CENTRAL BANK OF NIGERIA AND AGRICULTURAL DEVELOPMENT IN BENUE STATE, 1978 – 2015

BY

TERHILE THADDEUS ITYONZUGHUL BSU/HIS/Ph.D/14/2048 B.A. HONS, (BSU), M.A. (BSU), & PGDE (UDUSOK)

A THESIS SUBMITTED TO THE POSTGRADUATE SCHOOL, BENUE STATE UNIVERSITY, MAKURDI, NIGERIA, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DOCTOR OF PHILOSOPHY DEGREE (Ph.D) IN HISTORY.

MAY, 2019

i

DECLARATION

I hereby declare that this thesis is a product of my research efforts undertaken under the supervision of Professor Toryina Ayati Varvar and Professor John Ebute Agaba and has not been presented elsewhere. All sources used in the work have been duly acknowledged by endnotes and quotation marks.

………………………… Terhile Thaddeus Ityonzughul BSU/HIS/Ph.D/14/2048

ii

CERTIFICATION

We certify that this thesis titled, “Central Bank of Nigeria and Agricultural Development in Benue State, 1978 – 2015” has been presented by Terhile Thaddeus Ityonzughul of the

Department of History, Faculty of Arts, Benue State University, Makurdi, and has been approved by the undersigned examiners.

1st Supervisor Head of Department Professor Toryina Ayati Varvar Professor Saawua Gabriel Nyityo Sign…………………………… Sign………………………….. Date: ………………………….. Date: ………………………

2nd Supervisor Professor John Ebute Agaba ……………………………….. Date:…………………………...

Having met the stipulated requirements, the thesis has been accepted by the Postgraduate School.

……………………………. Professor Toryina Ayati Varvar Dean, Postgraduate School Date:………………………..

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DEDICATION

This study is heartily dedicated to God Almighty, the author of human knowledge and wisdom.

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ACKNOWLEDGEMENTS

I would like to express my unreserved appreciation to several persons who contributed immensely to the final outcome of this thesis. First, I owe my first supervisor

Professor, Toryina Ayati Varvar, a great debt of appreciation for his timeless support and encouragement from the beginning to the end of this work. He considered me as his son and treated me as such. Apart from reading this thesis and offering invaluable suggestions at different levels in the course of its preparation, he equally assisted me financially. More importantly, he allowed me access to his personal library, which motivated me to work harder.

In no small measure, I acknowledge with gratitude, the intellectual support given to me by my second supervisor, Professor John Ebute Agaba. He also read this work critically and offered useful suggestions which saved the work from avoidable errors. Despite his tight schedule as the then Head of Department, Professor Agaba was up and doing to make sure that we work harder and graduate in good time.

My hearty thanks also goes to Professor Mike Odugbo Odey, my internal reader for showing interest in this study. He meticulously read twice the manuscripts, constructively criticised the weak links and gave me direction. His thought-provoking inputs refined my ideas which in turn improved the quality of this thesis.

My warm and special appreciation also goes to Professor S. G. Nyityo, the Head of

Department and all other P.G. Lecturers in the Department of History particularly Professor

S. I. Okita, Professor Y. A. Ochefu, and Professor A. M. Adejo. I am also grateful to Dr V.

Iyanya, Dr S. I. Ugbegili (P.G. Coordinator), Dr E.C. Ayangaor, Dr. T. T. Dzeka, Dr M.

Kpoghul and Dr C. S. Orngu. Apart from bringing various suggestions to this work, these lecturers motivated me by asking frequently the status of my work; this enhanced the pace of this work. I also appreciate very sincerely Dr. D. M. Igba and Dr. E. S. Okla for assisting me

v with some relevant materials for writing this work. My appreciation also goes to Dr. E. T.

Ikpanor and all the staff of the Department.

In undertaking this noble assignment, Dr. P. I. Ukase of the Department of History and International Studies, Kogi State University, Anyigba, has shown me a lot of libraries to visit in the course of sourcing for materials for writing of this thesis and this has enhanced the pace of my work. Dr. E. I. Yecho of the Department of History and Strategic Studies, Federal

University, Dutsin-Ma, Katsina State, I must appreciate your words of encouragement and financial assistance especially in the course of carrying out my field work.

I also sincerely acknowledge other lecturers in the Faculty of Arts, particularly the

Dean, Professor S.D. Shishima, Dr. Moses T.Tsenongo, Mr. Za-Ayem Agye, Dr. P.S. Bagu,

Dr. M. Ajima, Dr. Chris Ukande, Dr. Abel Iya, Mr.Isaac S.Yongo, and my friend Dr Joshua

Agbo.

I must not forget to acknowledge the contributions of the staff members of the Central

Bank of Nigeria for facilitating my data collection. These are S. A. Ama, G. Onyike, I. Gbaja,

T. A. Zubawu. In the like manner, I acknowledge the Chief Liberian, Akperan Orshi College of Agriculture and Mr. Jasper, who vividly helped to search the library resources to facilitate my study. Similarly, I appreciate library staff of ABU, Zaria especially Mrs. F. Kudi

(Department of Agricultural Economics and Rural Sociology) and Mr. S. Yahaya (Kashim

Ibrahim Library).

This acknowledgement will not be complete without acknowledging the families of

Hon. Atoo Chia, Msondu Tyough, Yanfa Abanger, Ihongo Abanger, Pastor Uneneh, Pastor

S.T. Ker, Pastor (Dr) E. Hanior, Takerada Usange, Tyoapine Anshila, Tor O. Adzembe

(especially Tor O.R. Adzembe who assisted in printing of this work), Daniel Hir, G.

Nyiamshima, S. Tsavsar, V. Agwa, O. Alagh, W. Ada, H. Ufum, I. Kase, T. Alakpa, D.D.

Anyam, Mrs Mbachaga and C. E.Jonah. To all my Ph.D classmates I thank you all. I again thank my Sweetheart- my fiancée Mummy Presh for inspiration and forbearance vi

TABLE OF CONTENTS

Fly Leaf

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgements v

Table of Contents vii

List of Figures xi

List of Tables xii

List of Acronyms xiii

Glossary of Vernacular Words

xviii

Abstract xx

CHAPTER ONE: GENERAL INTRODUCTION

1.1 Background to the Study 1

1.2 Statement of the Research Problem 5

1.3 Aim and Objectives of the Study 6

1.4 Justification and Significance of the Study 7

1.5 Scope and Limitation of the Study 8

1.6 Research Methodology 9

1.7 Conclusion 12

Endnotes 13

vii

CHAPTER TWO: REVIEW OF RELATED LITERATURE, CONCEPTUAL CLARIFICATIONS AND THEORETICAL FRAMEWORK

2.1 Introduction 15

2.2. Related Literature on Africa 16

2.3 Related Literature on Nigeria 21

2.4 Related Literature on Benue State 38

2.5 Conceptual Clarifications 47

2.6 Theoretical Framework 55

2.6.1 High Input Pay-Off Theory 56

2.6.2 Financial-Led Growth Theory 57

2.7 Conclusion 58

Endnotes 59

CHAPTER THREE: AGRICULTURAL DEVELOPMENT PROGRAMMES IN BENUE AREAS, 1967 – 2015

3.1 Introduction 66

3.2 Agricultural Development Programmes under Benue-Plateau, 1967-1976 66

3.2.1 Benue-Plateau State Ministry of Agriculture 66

3.2.2 Food Production Programme 67

3.2.3 Tractor Hiring Services 68

3.2.4 Forest Reserves 69

3.2.5 Livestock Farms 70

3.3 History and Geography of Benue State, 1976-2015 72

3.4 People of Benue State 78

3.5 Benue State Agricultural Development Programmes 81

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3.5.1 Ministry of Agricultural and Natural Resources 84

3.5.2 Agricultural Development Corporation (ADC) 85

3.5.3 Benue Agricultural and Rural Development Authority (BNARDA) 87

3.5.4 Benue Tractor Hiring Agency (BENTHA) 88

3.6 Conclusion 91

Endnotes 92

CHAPTER FOUR: ESTABLISHMENT OF THE CENTRAL BANK OF NIGERIA AGRICULTURAL INTERVENTION SCHEMES IN BENUE STATE, 1978-2015 4.1 Introduction 96

4.2 The Establishment of the Central Bank of Nigeria 1958 96

4.3 Objectives and Functions of the Central Bank of Nigeria 102

4.4 Channels Adopted by the Central Bank of Nigeria for Agricultural

Development in Benue State 106

4.4.1 Agricultural Credit Guarantee Scheme Fund (ACGSF) 1977 107

4.4.1.1 Self Help Groups (SHGs) Linkage Programme 115

4.4.1.2 The Trust Fund Model (TFM) 122

4.4.1.3 Interest Drawback Programme (IDP) 128

4.4.2 Rural Banking Scheme 1977 131

4.4.2.1 Peoples’ Bank of Nigeria (PBN) 1989-1991 133

4.4.2.2 Community Bank 1990-2004 (Microfinance Bank) 2005-2015 141

4.4.2.3 Nigerian Agricultural Cooperatives and Rural Development Bank (NACRDB) 152

2000-2010 (Bank of Agriculture-BOA) 2010-2015 147

4.5 Conclusion 159

Endnotes 161

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CHAPTER FIVE: COMMERCIAL AGRICULTURAL CREDIT SCHEME IN BENUE STATE, 2009 – 2015 5.1 Introduction 171

5.2 Agro-Allied Industries and Commercial Agricultural Credit Scheme (CACS) 171

5.2.1 Hule and Sons Nigeria Limited (Oil Division) Wannune, 1996 173

5.2.2 Teragro Commodities Limited Makurdi, 2003 182

5.2.3 Mikap (Rice) Nigeria Limited, 2011 188

5.3 Conclusion 196

Endnotes 198

CHAPTER SIX: IMPACT, CHALLENGES AND PROSPECTS OF CENTRAL BANK OF NIGERIA AGRICULTURAL INTERVENTION SCHEMES IN BENUE STATE

6.1 Introduction 202

6.2 Impact of Central Bank of Nigeria in Agricultural Development in Benue State 202

6.3 Challenges of Central Bank of Nigeria in Agricultural Development in Benue

State 216

6.4 State of Agriculture in Benue State up to 2015 220

6.5 Prospects of Agricultural Development in Benue State 225

6.6 Conclusion 226

Endnotes 228

CHAPTER SEVEN: SUMMARY, CONCLUSION AND CONTRIBUTIONS TO KNOWLEDGE

7.1 Summary and Conclusion 231

7.2 Contribution to Knowledge 238

Bibliography 240

Appendices 255

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LIST OF MAPS AND FIGURES

Map 1 Map of Nigeria showing Benue State 74

Map 2 Map of Benue State 75

Figure 4.1 Central Bank of Nigeria Abuja, Headquarters 100

Figure 4.2 Organisational Chart of the Central Bank of Nigeria 105

Figure 5.1 Hule and Sons Nigeria Ltd (Oil Mill Division, Wannune) 175

Figure 5.2 A Processing Machine Procured from India in 2012 175

Figure 5.3 Soya Meal (by-products) Gathered in Sacks after Extraction of Oil 176

Figure 5.4 Farmers and Traders Exchange Articles of Trade for Money 176

Figure 5.5 The Two Generators that Supplied Complex at the Oil Mill 177

Figure 5.6 Fruit Juice Concentrate Processing Line 183

Figure 5.7 Terago Fruit Juice Concentrates Prepared and Kept in Drums for Sell 184

Figure 5.8 Rice being Produced at the Mill 191

Figure 5.9 The Rice Mill 191

Figure 5.10 Equipment at the Rice Mill 192

Figure 5.11 Rice Ready for Supply 192

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LIST OF TABLES

Table 3.1 Local Government Areas (LGEAs) and Population of Benue State in 2006 79

Table 3.2 Types and Population of Selected Livestock in Benue State Compared to the National Livestock Population (NLP) 80

Table 3.3 Fish Production by Inland States (000 tonnes) 81

Table 3.4 Food Crops Produced in Benue State 90

Table 4.1 Succession List of the CBN Governors, 1958-2018 101

Table 4.2 Cumulative Total of ACGSF Loans Guaranteed for Benue State, 1978 – 2015 (N M000)s 109

Table 4.3 Cumulative Total of ACGSF Loans Repaid Annually By Benue State, 1978 – 2015 (N M000)s 111

Table 4.4 Annual Cost Returns of Beneficiaries of ACGSF in Benue State 112

Table 4.5 Distribution of Production Based on Type of Agricultural Activities 113

Table 4.6 The Number of Participating Banks in ACGSF in Benue State 1978-2016 114

Table 4.7 Distribution of Commercial Banks in Benue State, 1992-1998 117

Table 4.8 Annual Savings Mobilized by Participating Banks in Benue State 118

Table 4.9 Loan Disbursed and Repayment in Benue State as

at 31st December, 1998 119

Table 4.10 Annual Output of SHGs in Benue State Measured in tones (1992 – 1998) 119 Table 4.11 Breakdown of Loan Repayment According to Banks 120

Table 4.12 List of Beneficiaries of Agric Loans under Benue Trust Fund Model (2010) 125 Table 4.13 Fund Placement under TFM at end-December, 2011 127

Table 4.14 Sectoral Disbursement of Loans and Advances as at

June 1991 by the People’s Bank 138

Table 4.15 Summary of Loan Disbursement and Repayment as at June 1991 138 xii

Table 4.16 Key Indicators of Community Banks 146

Table 4.17 Sectoral Distribution of Loans and Advances by

Community Banks in the year 2003 147

Table 4.18 Statistics of the Microfinance Sector 151

Table 4.19 Summary of Loan Disbursement and Repayment Report for the Period between 01/01/2012 and 31/12/2016 by BOA, Makurdi Branch 155

Table 4.20 Agricultural Sector Inclusive Growth Factor 159

Table 5.1 Grains Purchased by Hule and Sons Ltd (Oil Mill division), 2010-2017 174 178

Table 5.2 Annual Production of Hule and Sons Ltd (Oil Mill Division) in Tones, 2010-2015 180

Table 5.3 Prices of Oranges in Benue State 187

Table 6.1 Comparism between Output of Crops in the last 10 Years in Tonnes in the Pre-CBN and the last 10 Years of CBN Agricultural Development Intervention Programmes 103

Table 6.2 Benue State Crop Production Data 2011 204

Table 6.3 Benue State Cultivated Area Data 2011 206

Table 6.4 Crop Man Yield (MT/HA) 208

Table 6.5 Benue State Fish Production Aquaculture 2011 209

Table 6.6 Commercial Agriculture Credit Scheme (CACS) Projects in Benue State 210

Table 6.7 Growth in Major Production (per cent) 212 Table 6.8 Percentage Distribution of Working Population in Nigeria by Activity, 2005 217 Table 6.9 Number of Applicants and Beneficiaries of CBN Agric Loans under Bank of Agriculture, Makurdi. 217

xiii

ACRONYMS AND ABBREVIATIONS CBN - Central Bank of Nigeria

ECB - European Central Bank

EU - European Union

AFRACA - African Rural and Agricultural Credit Association

NGOs - Non-Governmental Organisations

GDP - Gross Domestic Product

ACGS - Agricultural Credit Guarantee Scheme

ERP - Economic Recovery Programme

IMF - International Monetary Fund

WB - World Bank

GOU - Government of Uganda

FGN - Federal Government of Nigeria

CBE - Central Bank of Ethiopia

BOT - Bank of Tanzania

SMEs - Small and Medium Enterprises

NISAL - Nigeria Incentives-Based Sharing System for Agricultural Lending

CACS - Commercial Agricultural Credit Scheme

PAIF - Power and Airplane Intervention Fund

RBDAs - River Basin Development Authorities

ADPs - Agricultural Development Projects

NACRDB - Nigerian Agricultural Cooperative and Rural Development Bank

OFN - Operation Feed the Nation

GR - Green Revolution

NAFPP - National Accelerated Food Production Project

NPFS - National Programme for Food Security

xiv

VODEP - Vegetable Oil Development

DFRRI - Directorate for Food, Roads and Rural Infrastructure

SAP - Structural Adjustment Programme

NDE - National Directorate of Employment

FSP - Family Support Programme

NAPEP - National Poverty Eradication Programme

IFAD - International Fund for Agricultural Development

BERDA - Benue Rural Development Agency

FDIC - Federal Deposit Insurance Corporation

SHGs - Self Help Groups

CMBs - Commodity Marketing Boards

NGPC - National Grains Production Company

FB - Fertilizer Board

NRPC - National Roots Production Company

BOA - Bank of Agriculture

UNICEF - United Nations International Children Emergency Fund

ILO - International Labour Organisation

UNDP - United Nations Development Programme

UNESCO - United Nations Educational, Scientific and Cultural Organisation

IBRD - International Bank for Reconstruction and Development

WB - World Bank

WACB - West African Currency Board

RB - Reserve bank

MA - Monetary Authority

BOC - Bank of Canada

BOM - Bank of Mexico xv

BNARDA - Benue State Agricultural and Rural Development Authority

NEEDS - National Economic Empowerment Development Strategy

PBN - Peoples Bank of Nigeria

BLPRW - Better Life Programme for Rural Women

IAR - Institute for Agricultural Research

PLC - Public Liability Company

US - United States

NBS - National Bureau of Statistics

FOS - Federal Office of Statistics

NPC - National Population Commission

NAIC - Nation Agricultural Insurance Company

TFM - Trust Fund Model

SMECGS - Small and Medium Scale Enterprises Credit Guarantee Scheme

FMA - Federal Ministry of Agriculture

BOE - Bank of England

FCT - Federal Capital Territory

NDIC - Nigeria Deposit Insurance Corporation

FEM - Foreign Exchange Market

NEXIM - Nigerian Export-Import Bank

SEC - Securities and Exchange Commission

NIDB - Nigeria Industrial Development Bank

FMBN - Federal Mortgage Bank of Nigeria

MPCs - Monetary Policy Circulars

FMG - Federal Military Government

DFD - Development Fiancé Department

AFMA - African Farm Management Associate xvi

UBN - Union Bank of Nigeria

PLC - Public Liability Company

BON - Bank of the North

MOU - Memorandum of Understanding

ADP - Agricultural Development Project

BENSACA - Benue State Action Committee on Aids

HIV - Human Immune Virus

AIDS - Acquired Immune Deficiency Syndrome

ECCDEC - Early Child Care Development and Education Centre

NEMA - National Emergency Management Agency

NTBs - Nigerian Treasury Bills

PB - Participating Bank

PBN - Peoples’ Bank of Nigeria

CBIC - Community Bank Implementation Committee

MSMEs - Micro, Small and Medium Enterprises

MFIs - Microfinance Institutions

DMBs - Deposit Money Banks

DFIs - Development Finance Institutions

TML - Taraku Mills Limited

CEO - Chief Executive Officer

IBN - Industrie Bau-Nord

USAID - United State Agency for International Development

SAN - Senior Advocate of Nigeria

FMA & RD - Federal Ministry of Agriculture and Rural Development

FRSC - Federal Road Safety

SEMA - State Emergency Management Agency xvii

NBCBs - National Board for Community Banks

CBs - Community Banks

xviii

GLOSSARY OF VERNACULAR WORDS

Munshi - The word used by the British colonialists to refer to the Tiv,

originally coined by the Fulani

Idirs - Informal Insurance Fund in Uganda

Equbs - Credit Associations in Uganda

Adashi - A contribution-based saving scheme that is principally interest

free. Its meetings are periodic, weekly, fortnightly, or monthly,

depending on what members agree upon.

Atoatiev - A non-Tiv persons, especially those who are neither

Hausa/Fulani

nor white persons

Beranda - Middlemanship

xix

Abstract This study focuses on the role of Central Bank of Nigeria (CBN) in Agricultural Development in Benue State between 1978 and 2015. It analyses how the CBN contributed to the agricultural development in the area under consideration. The study notes that the CBN initiated and implemented many agricultural development programmes solely or in tandem with policies of the Federal Government of Nigeria. However, most of the programmes failed to meet the needs of the rural dwellers and/or farmers. The inability of the CBN’s first agricultural development programme, the Agricultural Credit Guarantee Scheme Fund (ACGSF) to effectively tackle the challenges impeding agricultural development led to the proliferation of the CBN’s agricultural development programmes in a bid to resolve the problems faced by the rural farmers. The study espouses the plethora of challenges faced by the Bank in the course of enhancing agricultural development. These challenges ranged from insufficient funding, corruption, bureaucratic bottlenecks, over-reliance on sponsorship, rural migration, general insecurity to life and property, illiteracy, high rate of loan default, and natural and operational constraints, among others. The essence of this study is to expose the seriousness of these challenges and in the process broadens policy options towards finding lasting solutions. The study employs theories of agricultural development and adopts the Financial-Led Growth Theory as the pillar of this work. The study adopts historical methodology in line with primary, secondary and tertiary sources; employing analytical and empirical tools in the course of investigation and analysis of the subject matter. The research discovered that, the CBN contributed marginally to agricultural development in Benue State. This is to say that, CBN has not completely freed the rural farmers from their plight. The argument is that, if the CBN pursued its policies of agricultural development diligently, utilized its funds judiciously and indeed partnered strategically and productively with key stakeholders (Federal Government, State Government, Participating Banks, and farmers), among others, this would go a long way in enhancing effective productivity and transformation of agricultural sector in the study area and even beyond.

xx

CHAPTER ONE

GENERAL INTRODUCTION

1.1 Background to the Study

One of the major challenges facing mankind is the need to provide a good

standard of living. This entails the provision of adequate food, clean water, safe

shelter and energy, a healthy and secured environment, education, and job

opportunities for present and future generations.1 To achieve these, from time

immemorial, man has been engaged in different forms of business activities in order

to meet up with the basic necessities for his livelihood. This prompted the

establishment of different industries including the banking industry. The banking

industry is a very fundamental subsector of the financial services sector of any

economy. Its relevance derives from the vital role it plays in the developmental

processes of the economy through basic activities, namely: deposit taking and

commercial lending and provision of credit and payment facilities. Banks, especially

those that carry on commercial banking businesses such as commercial banks and

community banks, have two basic functions in line with these activities.2 These are

the provision of investment outlets and payments facilitation. In payment facilitation,

banks aid international trade by issuing letters of credit on behalf of customers; and

other services relating to financial intermediation. In buttressing the relevance of

banking industry, The Encyclopaedia Americana, Vol.3 bluntly stipulates that:

Economic activity as it is known… cannot be smooth sailing without the continuing flow of money and credit. The economies of all market- oriented nations depend on the efficient operation of complex and delicately balanced systems of money and credit. Banks are an indispensable element in these systems. They provide the bulk of money supply as well as the primary means of facilitating the flows of credit.3

It is worthy to mention that the overall economic development of any nation has been

found to have an inextricable nexus with the development in her financial service 1 industry. In this vein, O.J. Umoh, opines thus: “An increase in the number and variety of banks plus a rise in the proportion of money and other financial assets in the total goods and services produced are essential features of economic development.”4 Where there are inadequate banking facilities for the populace of any nation, economic development is seriously undermined as there is an impediment to the continuing flow of money and credit.5

Indeed, the financial sector is critical to the development of an economy as it plays a crucial role in the process of financial intermediation for economic growth and development. A financial service industry is a conglomerate of various institutions, markets, instruments, and operators that interact within an economy to provide financial services. These services, among others, include resource mobilisation and allocation, financial intermediation and facilitation of foreign exchange transactions to boost international trade.6 Financial service industry comprises the gamut of financial instruments and financial markets that are the regulatory and supervisory authorities, banks and non-bank financial institutions.7 In Nigeria, over the years, the financial service industry has affected agricultural development. The major financial institutions that are involved in financing of agriculture include the Central Bank of

Nigeria (CBN), Bank of Agriculture (BOA), and Microfinance Banks (MfBs), among others.8

A Central Bank is a major institution in any modern economy and it is quite important to the functioning of both the private sector and the fiscal operations of the government. Central banking is an activity separate from ordinary commercial banking in that a Central Bank in general, does have little transactions with ‘the public’, dealing mainly with the government and commercial banks.8

2

The Central Bank of Nigeria (CBN) which was established on March 17, 1958 became fully operational on July 1, 1959.9 The vision of the CBN is to be one of the most efficient and effective among the world’s Central Banks in promoting and sustaining economic development.10 The mission of the bank is to be “proactive in providing a stable framework for the economic development of Nigeria, through transparent implementation of monetary and exchange rate policy and management of the financial sector”.11 Based on this vision and mission, the bank performs many functions. These functions range from the statutory functions, monetary and banking policy functions, developmental functions, and supervisory functions, including agriculture, among others. Contributing on this, I. G. Garba shows that:

The Central Bank of Nigeria (CBN) since its establishment in 1959 has emerged from its traditional roles of lender of last resort, regulating the money supply in the economy and maintenance of the country’s external reserve, among others, to engage in a variety of activities in the form of policies, programmes and projects for the development of the Nigerian economy. In particular, the promotion of agricultural production and export trade has been pursued to varying degrees using various policy instruments at its (CBN) disposal under changing national and international economic and political climate.12 In doing this, the CBN introduced diverse instruments such as Agricultural Credit

Guarantee Scheme Fund (ACGSF) which has three components of Self Help Groups

(SHGs), The Trust Fund Model (TFM), and Interest Drawback Programme (IDP).

Also is the introduction of the Rural Banking Scheme (RBS) which has the components of People’s Bank of Nigeria (PBN), Community Bank, which is now

Microfinance Bank (MfB), and the Nigerian Agricultural Cooperatives and Rural

Development Bank (NACRDB) which is now the Bank of Agriculture (BOA). The last efforts made by the CBN for the purposes of agricultural development in this regard are the establishment of Commercial Agricultural Credit Scheme (CACS) and

Anchor Borrowers’ Programme (ABP). In carrying out all these programmes,

3 commercial banks become vital agents as they serve as Participating Financial

Institutions in the quest for agricultural development.

The importance of the agricultural sector in Nigeria cannot be overemphasised. It is the main source of food supply for most of the population. It provides the means of livelihood for over 70 percent of the population, a major source of raw materials for the agro-allied industries and a potent source of the much needed foreign exchange for the country.13 Given the dominant role of agriculture in the economy, prospects for food security, the supply of raw materials, and the economic growth and development are critically dependent on what happens in this sector.14

U. M. Okpanachi demonstrates this further by quoting A. W. Lewis verbatim:

If agriculture is stagnant, it offers only a stagnant market, and inhibits the growth of the rest of the economy. The core of the doctrine “balanced growth” is that to neglect agriculture makes it difficult to develop anything else.15

The above quotation explains the relevance of agriculture and the implication of its neglect. O. L. Akinboyo argues that agriculture constitutes one of the most important sectors of the Nigerian economy.16 Despite Nigeria’s rich agricultural resource endowments and the various policies instituted by successive administrators, the sector has been growing at a very low rate and this has increased the incidence of poverty in Nigeria especially in the informal sector.17 In fact, virtually all the agricultural policies put in place by successive administrations have contributed to agricultural development, though marginally.

F. O. Ayatse and I. I. Akuva opine that, agriculture is the main economic activity for rural dwellers in Nigeria and does not only provide employment for them but also enhances food security.18 Apart from generating income for those who engage in it, agriculture forms the bedrock of any development aspiring nation.

Countries like Great Britain and United States of America took off in their industrial

4

drive from agriculture. It means that any nation that fails to consider agriculture

seriously trades-off its future.19 For Nigeria, agriculture is still considered as one of

the starting points towards economic development, and therefore, private individuals,

government agencies and companies, and even the CBN sponsored it over the years

despite the fact that attention has been deviated to the oil sector.

Arising from the above premise, the researcher probes into the task of

analysing the interventions of the CBN in agricultural development in Benue State; it

shows how the bank has affected agricultural development in the area under review.

The study also identified and proffered solutions to the challenges bedevilling the

CBN in its quest for agricultural development in Nigeria at large.

1.2 Statement of Research Problem

Many studies are carried out on CBN and agricultural development generally.

Some of these studies examine the roles of the CBN in agricultural financial

institutions like the Nigeria Agricultural Cooperative and Rural Development

(NACRDB), now called Bank of Agriculture, others analysed the impact of the CBN

in financial disbursement. Some others explore the role of CBN in agricultural

statistics, while others harp on the role of CBN in economic development, among

others. Such works are not specific on Benue State.

In spite of all these studies, agriculture in Benue State is characterised by a lot

of challenges including environmental constraints, socio-economic and political

constraints, among others. These challenges compelled Benue State farmers to operate

under strenuous conditions. This called for the intervention of Benue State

Government and the Federal Government of Nigeria (FGN) through their policies and

programmes of agricultural development. The FGN, through her mother bank, the

CBN (the subject matter of this research) initiated agricultural development

programmes that would facilitate agricultural development in Nigeria and Benue State 5

in particular, namely: Agricultural Credit Guarantee Scheme Fund (ACGSF), Rural

Banking Scheme (RBS), and Commercial Agricultural Credit Scheme (CACS).

However, all of these aforementioned programmes did not yield the desired results

since agriculture was still at its rudimentary stage in the study area. It is in this regard

that this study attempts to historicise CBN’s agricultural development interventions

schemes in Benue State from 1978 – 2015. To do this effectively, this study attempts

to address the following questions:

i. What were the agricultural development programmes in the Benue area prior

to 1978?

ii. What were the CBN’s agricultural development intervention schemes in

Benue State?

iii. What was the nature, scope and beneficiaries of the Commercial Agriculture

Credit Scheme in the area under review?

iv. What were the impact, challenges and prospects of the CBN in its quest for

agricultural development in the study area?

Arising from the above, the main aim and objectives of the study are clearly

stated below.

1.3 Aim and Objectives of the Study

The broad aim of this study is to historically examine the role and relevance of

the CBN in agricultural development in Benue State of Nigeria, from 1978 to 2015.

Against the backdrop of the need to achieve this broad aim, it becomes imperative to

set out some realisable objectives for the study as stated hereunder:

i. To ascertain the agricultural development programmes in the Benue area prior to

1978.

ii. To discuss the CBN’s agricultural development intervention schemes in Benue

State, 1978-2015. 6

iii. To assess the nature, scope and beneficiaries of the Commercial Agriculture

Credit Scheme in the area under review.

iv. To determine the impact, challenges and prospects of the CBN in its quest for

agricultural development in the study area.

1.4 Justifications and Significance of the Study

This study is justified because it gives a detail analysis on the specificity of

CBN’s activities in agricultural development in all ramifications in Benue State of

Central Nigeria from 1978-2015.

Benue State which is chosen for this study has a population of about 4,942,100

out of the Nigeria’s total population of 160 million.20 This study is, therefore, justified

in that the population which it treats will certainly give a microcosm of the CBN’s

impact on agriculture in Nigeria within the period in question. In addition, almost all

the agricultural policies and programmes were initiated by the Federal Government

and devolved to the various states across the country. Owing to the above, the

significance of this academic treatise will be seen in diverse ways:

Firstly, the findings of this research would help to expand our intellectual and

philosophical horizon in the area of central banking and in agricultural development

in particular. In doing this, the study will stimulate new researches in this area of

study.

Secondly, findings of this research would be useful to policy makers of our

time and future; students, researchers, agricultural officers, and farmers, and other

stakeholders in tackling the challenges hindering CBN’s performances in agriculture,

using the best approaches that would give desired results.

Finally, the work forms part of the researcher’s contribution to the

advancement of human knowledge in the field of Economic History.

7

1.5 Scope and Limitations of the Study

This research is concerned with history of the contributions of the CBN to the

development of agriculture in Benue State between 1978 and 2015. The research

confined itself to this state in order to have a manageable coverage leading to an in-

depth analysis of issues. We have chosen Benue State to work on because of the

impact the Central Bank of Nigeria has had in Benue State the area of agricultural

development.

This study covers the period 1978-2015. These timelines are informed by the

fact that it was in 1978 the CBN’s Agricultural Credit Guarantee Scheme Fund

(ACGSF) started contributing meaningfully to agricultural development in Benue

State and Nigeria on the broader perspective.21 The year 2015 is also significant

because it marked the year that the level of CBN’s intervention in agricultural

development scaled down.22 During this year, many Participating Banks (PBs) which

served as the link between the CBN and farmers declined from participating in the

said programmes on the ground that they bear high risk. The terminal period 2015 is

also chosen in this study because of the fact that any meaningful development can be

recorded and assessed in whatever agricultural development programme the CBN

partook in within the time frame. It is important to state that the nature of the CBN’s

involvement in the Federal Government measures of agricultural development in

Benue State, Central Nigeria, from 1978 – 2015 forms the crux of this study,

references are made to other areas outside the scope of this study where such is

deemed to provide a sound intellectual discourse that will enhance our understanding

of the subject matter under consideration. References are also made outside the time

frame of this study, where such gives a good historical link for a better analysis of

issues that border on the study.

8

In undertaking this study, some challenges were encountered and resolved.

These challenges ranged from access to data and relevant information especially from

the CBN. For example, some questions the researcher asked concerning CBN and

agricultural development were considered too inquisitive and were redirected to the

CBN Governor, Deputy Governors and Directors who were not easily accessible. It

took the author more than six months requesting for data on issues of agricultural

development from CBN. This is because the officials of the Bank thought that the

researcher would use it for other purposes aside the research analysis, even though the

researcher presented his letter of institutional affiliation. However, through persuasion

and perseverance this challenge was surmounted.

Also, was the challenge of insecurity, as at the time of carrying out this study

some areas in the State were under Fulani attacks and the menace of local militias that

claimed many innocent lives. The researcher did not go into interior of those places

but rather interviewed people in major settlements where insecurity was minimal.

1.6 Research Methodology

The materials for this study were derived from primary, secondary, and

tertiary sources. The primary sources include oral interviews, archival materials and

government materials. Secondary sources include published books, published articles,

magazines, newspapers, CBN bullions, et cetera. Tertiary sources were in form of

unpublished seminar papers, unpublished theses, dissertations, project reports, and

internet materials. Indeed, primary, secondary or tertiary sources respectively do not

give the researcher sufficient information needed for this study. Furthermore, neither

of these sources could be considered inferior or subordinate to the other, but rather

complement each other.

The thesis use historical methodology intertwined with multi-disciplinary

approach for the analysis. This is because, the phenomenon of CBN and agricultural 9 development has been a subject of keen interest, not only to the discipline of history, but also to other related disciplines like Banking and Finance, Accounting, Business

Management, Economics, Agri-Business, Agricultural Economics, Agricultural

Science, and the likes. The multi-disciplinary approach is relevant in analyzing conceptual and theoretical issues as well as exploring the various contributions of the

CBN towards agricultural development. Multi-disciplinary approach is the type of research approach that makes use of sources from other disciplines in order to enhance a vivid analysis of issues.

The multi-disciplinary or multi-dimensional approach is also called polymethodological approach as it takes care of all the dimensions of human life. It is the combination of all the methodologies such as phenomenological, historical, theological, comparative and thematic approaches.23 For example; the historical, comparative and descriptive approaches used in the study of CBN and agricultural development in Benue State.

The alignment of the study with historical and multi-disciplinary approach is justified by the fact that allied disciplines enable historians to refine and make more explicit their procedure of explanation. In amplifying the above position, E. H. Carr argues that, “social scientists and historians are all engaged in different branches of the same study: the study of man and his environment and of the effects of man on his environment and of his environment on man”.24 According to M. T. Tung, “when you heed only to one side you will be benighted, but when, however, you listen to both sides you will be enlightened”.25 Correspondingly, J.C. Smeby opines that “exposing the candidates to diverse perspectives is no bad thing since variety in perspective should provide intellectual stimulus”.26 These amplify the relevance of multi- disciplinary approach in conducting research works such as this. Here, the researcher makes use of materials from Geography to analyse the geography and population of 10

Benue State. Materials from Economics, Agricultural economics, Business

Management and History, among others, are used to assess the role of CBN in agricultural development.

The nature of the research problem dictates the use of demographic data, which, although not alien to the discipline of history, is more familiar in the discipline of geography. Both conventional and non-conventional sources of historical demography are employed to give a statistical picture of the investigated phenomenon.

All literature are critically examined in order to sieve whatever weaknesses and limitations that exist in same. During the process of writing, the researcher visited libraries such as Benue State University Library, Makurdi, University of Agriculture

(Francis Idachaba) Library, Makurdi, Akperan Orshi College of Agriculture Library,

Yandev, Makurdi Public Library (Fidelis Makka Library), Makurdi, University of

Nigeria Library, Nsukka, Ahmadu Bello University Library, Zaria, Institute for

Agricultural Research, Ahmadu Bello University, Zaria Library, Department of

Agricultural Economics and Rural Sociology Library, Ahmadu Bello University,

Zaria, National Bureau of Statistics (NBS) Office, Central Bank of Nigeria (CBN)

Libraries, Abuja and Makurdi, Bank of Agriculture (BOA) Makurdi, the Benue State

Ministry of Agriculture, Federal Ministry of Agriculture (FMA) Abuja, National

Bureau of Statistics (NBS)/Federal Office of Statistics (FOS) Abuja, National

Population Commission (NPC) Makurdi, and Benue Agricultural and Rural

Development Authority (BENARDA), and many other places in Benue State.

Extensive field work had been undertaken spreading over a period of two years. Oral information were collected through interviews and focus group discussions with CBN workers (especially those in the Development Finance Office),

BOA workers, civil servants in the Federal and State Ministries of Agriculture, 11

Farmers (especially those who benefited from the agricultural credit facilities) and

traders, among other categories of people. To achieve this, the author travelled across

the length and breadth of Benue State conducting interview. In the interview process,

the author identified a total number of ninety four informants (between the ages of

twenty seven and eighty years) who were presumed to have knowledge about the

history and activities of the CBN and agricultural development in Benue State.

Interview proceeding were handwritten and on Global System Mobile (GSM) phone.

A list of informants and their personal information is included in the first segment of

bibliography.

Again, the multi-disciplinary approach has not been restricted to the

methodology of information and data collection. It has also been extended to the

methodology of analysis, interpretation and presentation of data. The various

conceptual and theoretical perspectives from the various disciplines and backgrounds

have been brought to bear on the present study.

1.7 Conclusion

On the whole, the chapter has given the background on which the analysis of

the study is based, by discussing the issues surrounding the choice of the topic. The

justifications, statement of the research problem, aim and objectives, and significance

of the work have been given. The chapter has equally examined issues that are central

to the thesis. The geographical delimitation of the study area, the methodology of

collecting data and the significance of the research is also stated. By and large, the

chapter has provided a general overview of the subject matter of the study and

described the key issues in the study as well as the methods and techniques employed

in the study. In Chapter Two, review of related literature, clarification of concepts and

theories relating to this study is done in other to enhance a proper understanding of

this study. 12

Endnotes

1. O.L. Akinboyo, “Five Decades of Agricultural Policies in Nigeria: What Role Statistics played?” in CBN Bullion, vol. 32. No. 4 October – December, 2008, Pp. 35-44.

2. G.O. Nwankwo, “Precedential Regulation of Nigerian Banking”, in Nigerian Banker, vol. 8. No.4, 1988, p.4.

3. The Encyclopedia Americana, Vol.3, International Edition, London: Encyclopedia Inc. 1983, p.169.

4. O.J. Umoh, “Financial Development and Rural Banking in Nigeria”, in CBN Bullion, July –December, 1997, p.14.

5. D. Nkiru- Nzegwu, The Bankers’ Liability. Ibadan: Heinemann Educational Books (Nig) PLC, 1993, p.19.

6. J.A. Olorunsho, “An Overview of the Nigerian Financial System” Paper Presented at the Induction Course of Newly Recruited Graduate Officers, CBN Training School, Lagos Nigeria (Other details not stated), p.6.

7. G.O. Evbuomwan, “Financing Agric Business in Nigeria: Challenges and Prospets”, in P.O. Okuneye & G.O. Evbuomwan (eds.) Agric Business in the African Century. Procedings of African Farm Management Association, A CBN Publication, 2005, p. 235.

8. R.A. Masha, “The Central Bank of Nigeria: Historical Development, Functions and Organizational Set – up” in CBN Bullion, Silver Jubilee Edition, July 1984, p.28.

9. F. Adekanye, The Elements of Banking: With Questions and Answers. Ibadan: F & A Publishers, 1986, p. 141.

10. Saturday Sun Newspaper. Vol.12, No.654, July 19, 2015, p.50.

11. Central Bank of Nigeria Annual Report, 2011, P.V.

12. I. G. Garba, “The Role of the Central Bank of Nigeria in Promoting Agricultural Production and Export Trade in Nigeria”, in CBN Bullion, Vol.15, No.3, July – September 1991, p.49.

13. G. G. Goshit, “Agricultural Development Programme and Food Security in Nigeria”, in P. Ogiji, (ed.) The Nigerian Economy: Challenges and Direction for the Growth in the Next 25 Years. Makurdi: Aboki Publishers, 2007, p.173.

14. G. G. Goshit, “Agricultural Development Programmes … p.173.

15. U. M. Okpanachi, “Policy Options for Re-positioning the Nigerian Agricultural Sector”, in O. Ogiji (ed.) The Food Basket Myths: Implications for Food Security and Agricultural Reforms in Nigeria: Essays in Honour of David Iornongo Ker. Makurdi: Aboki Publishers, 2003, p.2.

13

16. O. L. Akinboyo, Five Decades of Agricultural Policies in Nigeria: What Roles Has Statistics … p.35.

17. O. L. Akinboyo, Five Decades of Agricultural Policies in Nigeria: What Roles Has Statistics … p.35.

18. F. O. Ayatse, and I. I. Akuva “Agricultural Programmes and Rural Development in Nigeria, 1999-2007”, in T. Wuam, and S. Ngarka, (eds.) Governance and Economic Development in the fourth Republic. Makurdi: Aboki publishers, 2010, p.96.

19. F. O. Ayatse, and I. I. Akuva “Agricultural Programmes and Rural… p.96.

20. National Population Census Commission, 2006. Also available at http://www.benuestate.gov.ng/index.php-2009. accessed 20.03.2014.

21. CBN, Agricultural Credit Guarantee Scheme Fund (ACGSF), 2013 Annual Report and Audited Financial Statemetns. Keffi: Salman Press Nig. Ltd, 2014, p.1.

22. This information was obtained from the office of Agricultural Credit Officer, LAPO Microfinance Bank, Makurdi. On 05.05.2017.

23. M. P. Adogbo and C. E. Ojo. Research in Humanities. Lagos: Malthouse Press Ltd. 2003, p.20.

24. E. H. Carr, What is History?. England: Penguin Books Ltd, 1964, p.5.

25. M. T. Tung cited in M. M. Adamu, “The Role of the Native Authority in the Agrarian and Pastoral Economy of Katsina Emirate, 1903 – 1960”. Ph.D Thesis, Department of History, ABU, Zaria, 2002, p.xxxi.

26. Smeby, cited in S. Taylor & N. Beasley, Handbook for Doctoral Supervisors. London: Routledge Taylor and Francis Group, 2005, p.71.

14

CHAPTER TWO

REVIEW OF RELATED LITERATURE, CONCEPTUAL AND THEORETICAL FRAMEWORK

2.1 Introduction

The thrust of this chapter is to review related literature on the central banks

and agricultural development in Africa, Nigeria, and Benue State our study area. The

review of related literature is very relevant to this work because it gives information

on the studies that have already been done and the areas that need to be improved

upon. In buttressing the relevance of literature review S.O. Emaikwu emphasis that:

It is an information search to verify the extent to which an identified problem or similar problems have been attended to previously. The review of literature is an exercise in which the researcher tries to identify, locate, read and evaluate previous studies, observations, opinions, and comments related to the individual’s planned research project. The literature review helps the researcher with a good knowledge of the state of art in the area he is working. It provides the researcher with the opportunity of knowing what areas have been covered, what techniques to employ in the investigation. Any researcher that ignores reviewing relevant literature for his study does so at the risk of duplicating previous studies, using unproductive techniques and may not be contributing much to the advancement of human knowledge.1

The above depicts the importance of literature review in diverse ways. However, it is

worthy to state that literature review also facilitates the delimitation of the research

problem, it assists in seeking new research approaches and methodology, it gives

insight into new methods and techniques adopted by the previous researchers, and it

helps the researcher to avoid sterile approaches, among others.2 Contributing to this

matter, J.E. Agaba notes that the review of literature delimits a research problem,

gives the researcher the privilege of knowing what has been overlooked, exposed the

researcher to the approaches of previous works. All of those could then lead to a

significant improvement in a research design and approach.3

15

Relatedly, A. Akpa demonstrates that, several useful benefits do accrue to the

knowledge seeker from a comprehensive review of related literature. He discloses

that:

It helps in the understanding of the history of the problem and research efforts made so far in addressing them; it helps in the choice of appropriate designs or procedures; it aids the development of theoretical and conceptual framework; it provides a medium by which previous research efforts can be critically assessed for their rigour in their problem definition and specification, their choice of analysis techniques and credibility in the interpretation of findings; it helps the researcher to convincingly justify the selection of the problem; it helps in avoiding unintended duplication.4

It is against this premise that the study attempts a review of related literature

focussing on Africa, Nigeria and Benue State. In doing this, attention is focused on

books, journal articles, book chapters and published conference proceedings,

Furthermore, the chapter undertakes a clarification of concepts that form the title of

this study to enhance their easy comprehension and application. It also discusses

theories of agricultural development showing their relevance to this thesis as seen in

the succeeding discourse.

2.2 Related Literature on Africa

S. I. Ijioma and J. Ruotsi in “African Central Banks and Rural Finance”5 point

out that in recent years, the global trend has been to give Central Banks a strong role

in the design and implementation of monetary policy measures to promote economic

growth. In the major industrialized countries, it is generally acknowledged that

Central Bank Policies have significantly contributed to the achievement of low rates

of inflation and a long period of sustained growth. The work establishes that nearly all

the central banks had their statutes revised since 1990 in order to fit into the key

objective of price stability. Ijioma and Ruotsi reiterate that:

To support central banks in confronting the challenge that they face when promoting rural finance, the African Rural and Agricultural Credit Association (AFRACA) organised a workshop in October 1999 16

in Harare, Zimbabwe, for central banks in Anglophone countries in sub-Saharan Africa. The theme of the workshop was “Strategies for Improving the Financial and Micro-Economic Environment in Rural Finance”.6

According to the work (as contained in the above quotation), the overall interest of the workshop was to advance appropriate measures for central banks to promote rural finance in Africa. The article also describes the growth process of banking and the operational and financial problems faced. In doing this, the work reviews the different instruments used in the country to support the rural economy. The authors focus directly on the Central Bank Agricultural Credit Guarantee Scheme and its operations in the difficult economic and financial environment. Similar papers on the related matter were presented by participants from Kenya, Tanzania, and Lesotho.

The work demonstrates clearly the role of the central banks towards agricultural development in Africa. This will enhance understanding of the CBN’s contributions to agricultural development in Benue State.

J. Ruotsi’s article “Financial Sector Reform in Africa and the Evolving Role of Central Banks,”7 which recognises the role of central banks in economic policy making. It opines that the Maastricht Treaty, which established the legal framework for the European Central Bank (ECB) and its relations with 15 other central banks of the European Union (EU), embodies the principles of central bank autonomy. The

ECB is granted independence from the European community to pursue its core policy of price stability. The work acknowledges the changing role of the central banks from price stability to other sectors including agriculture. Ruotsi’s article argues that, with the new policies, which included restructuring and closing down rural development finance institutions, formal financial flows to the rural areas and agricultural operations have substantially decreased and in some cases ceased entirely. The article

17 shows that if central banks fail to properly formulate their policies, they will fail in all ramifications including the agricultural sector.

D. Opiokello’s “Role of the Central Bank in Developing Rural Financial

Markets: The Case of Uganda”8 demonstrates that in 1999, Human Development

Index by UNDP ranked Uganda 158th out of 174 poorest countries in the world. It had a very low overall population density and abundant productive land. The economy was dominated by agriculture, which was a leading contributor to overall Gross

Domestic Product (GDP) and the main foreign exchange earner. At the end of nearly two decades of civil strife, the Economic Recovery Programme (ERP) was launched in 1987 with support from the International Monetary Fund (IMF) and the World

Bank (WB). Since that time the Government of Uganda (GOU) adopted and pursued policies supported by a stable microeconomic environment, which resulted into satisfactory economic performance over decades. He also examines closely the financial landscape in Uganda and shows that, as at the time of his study, the formal financial sector included 18 commercial banks (but three of them were closed because of insolvency), six credit institutions, 20 insurance companies, one leasing company and a post office bank. Opiokello also shows that the country has 80 registered operators that offered Microfinance services and consisted of the Non-Governmental

Organisations (NGOs), Cooperatives and other Savings and Credit Associations. The study argues that the only acceptable collateral security requirements to commercial banks are land and buildings (usually real estate on titled land). As a result of this, farmers do not in most cases meet the requirement of traditional commercial banks for credit. The reviewed work implies that if the conditions for loan facilities are strict, then farmers lack access to them. It also shows that central banks are vital agents of agricultural development.

18

An article by F. Deen-Touray titled, “The Gambian Central Bank’s

Interventions in Microfinance Market”9 reveals that majority of the population of the

Gambia consist of rural dwellers and predominantly farmers. Agricultural credit was therefore conceived as the surest means of achieving increasing productivity and improving the socio-economic conditions of the rural population. In effect, considerable weight was placed on agricultural credit as the crucial remedy for national economic woes and the abject poverty that prevailed in the rural areas. This was done by policy makers to the negligence of savings, an important component of financial intermediation process; where savings policy existed. It was emphasised at the national level rather than the household level. In this wise, government embarked on the establishment of state-owned banks to institutionalised and direct credit to agricultural sector at the expense of other economic activities. Additionally, government prioritised the development of a plethora of Agricultural and Rural

Development Programmes in a bid to improve farmers’ capacity to increase output and productivity. The relevance of Deen-Touray’s work to this study is that, it would be of help in policy formulation, implementation, and execution both at national and local levels in order to develop agriculture generally.

L. Lemma’s work “Central Bank’s Intervention in Microfinance in Ethiopia”10 is also relevant to the understanding of the concept of Central Bank and rural development. He opens his article in a similar way Deen-Touray does by noting that

80% of the Ethiopian population is rural dwellers who adopt agriculture as their core occupation but hardly benefit from the services of formal financial institutions. Bank lending to the agricultural sector constitutes, on average, only 10% of the banks’ total loan portfolio. He attributes the low percentage to distant location of the banks to the farmers. Lack of a strong support from the financial institution made the rural household to rely on relatives and friends, resort to the high-cost financing from 19 money lenders or use rotating savings and credit associations (equbs) and informal insurance funds (iddirs) to meet their savings and borrowing needs. Lemma however, explains the challenges associated with the measures as financial support from relatives and friends is usually small and uncertain; money lenders charge exorbitant interest rates; and rotating savings and credit associations are based on personal understanding with the officials. The author declares that though having recognised the importance of the rural sector, a combination of forces has been joined to finance it, as he (Lemma) echoes:

Financing for the rural sector has been provided through government- supported programmes or development banks; agricultural co- operatives; multilateral institutions such as IFAD, UNDP, ILO, UNICEF and EU; and NGOs.11

This article is a good attempt at explaining the travails encountered by farmers in the course of their productive activities. The coping strategies employed by the Central

Bank of Ethiopia (CBE) under the auspices of the international agencies are an indication that Nigeria too can liaise with those agencies to sail smoothly on path of agricultural development. Despite the immense contributions of Lemma’s work to the present study, it lacks a conceptualization of key variables (banking, central bank, and microfinance).

B. N. Msami’s work which examines “Bank of Tanzania and Rural Finance

Policies”12 projects the population of Tanzania as 29.6 million and a per capital income of USD 120. The study notes that the greater percents of the country’s population are poor and that they live in rural areas. In this respect, development of the rural sector is, therefore, central toTanzania’s strategy to increase national output and employment, and in its fight against poverty. The article explains that, the challenge in Tanzania’s rural development remains that of identifying sustainable ways of stimulating the main sectors of the rural economy, agriculture and micro

20

enterprises, to achieve their growth potential. The study investigates the initiatives by

the Bank of Tanzania (BoT) and buttresses that in August 1996, the BoT secured a

USD 0.5 million grant from the World Bank, which was used to finance a series of

nation-wide studies on the rural and microfinance sector. This work is a fair attempt at

explaining how central bank enhances rural development especially in the agriculture

sector. Msami’s work is characterised with distinctive weakness. The work

acknowledges that rural economy and agriculture remain underdeveloped, but it fails

to advance policy options that will create an enabling environment to develop them.

2.3 Related Literature on Nigeria

D. Nkiru –Nzegwu in his work, The Banker’s Liability13 opens with a notion

that the concept of banking in a contemporary sense was unknown to the Native Laws

and customes of the geo-political entities and units making up the present Nigeria.

The author traces the origin of modern banking to the period when E. Dempster

started the movement of money from one part of the country to the other for the

purpose of boosting his shipping business. This is an indication that banking business

pre-dates Nigeria’s independence. The book states that government has a key role to

play in banking industry even in the developed economies, like the United States. The

work traces the evolution of banking industry under three phases namely: 1892- 1952,

1952-1985 and 1986 to date.

Concerning the first phase, the author notes that it was characterized by the

near absence of any form of regulatory regime for banking in Nigeria resulting in one

crisis after another and concomitant loss of public confidence in the developing

system. The study acknowledges that during this era, any firm so desirous could be

registered under the Companies Ordinance. The only restriction that existed was that

if more than ten persons were to engage in the business of banking, they must register

a company under the companies ordinance. The Second Phase (1952 -1985) was 21 ushered in by the first –ever legislation in Nigeria that is the Banking Ordinance of

1952. The legislation in addressing the problems that inhibited the growth of indigenous banks made provisions for: Minimum paid –up capital, maintenance of an adequate liquidity ration, maintenance of adverse fund, maintenance of capital imposition and of ceiling an unsecured loan and examination and supervision of banks. In the Third Phase (1986 to date), the Federal Government decided to deregulate the economy as one of the consequences of the Structural Adjustment

Programme (SAP) it adopted. The deregulation of the economy was to touch all facets of the economy including the banking industry. A situation of free market enterprise meant lesser governmental presence by way of participation in economic activities.

Several legislations were enacted to establish the necessary legal frame work for the exercise. Furthermore, policy decisions were taken resulting in the liberalization of the bank licensing scheme. After this, the author proceeds with an examination of the relevance of banking industry and emphasises on deposit taking and commercial lending and provision of credit and payment facilities. The work is relevant to the present study in that it will enhance our understanding of the origins and development of banking industry and the emergence of the Central Bank of Nigeria (CBN).

In Elements of Banking: Money, Financial Institutions and Markets,14 E.S.

Ezekiel investigates the origin of banking to the period (13th century) when a group of

Italian goldsmiths migrated from an Italian province called Lombardy to settle in a part of London, today known as Lombard Street. By gradual process, these goldsmiths before the seventeenth century had evolved a system of transactions which gave birth to our present day banking system after a series of revolutions and innovations.The study painstakingly discusses the establishment of the CBN, its functions and its development using statistical figures in tabular form. This work is

22 helpful to the present study in that it provides a conceptualization of bank, Central

Bank, as well as its functions.

Another work consulted under this segment is G. O. Nwankwo’s book, The

Nigerian Financial System, 15 which traces the background of the CBN from Currency

System to West African Currency Board (WACB). The WACB was established in

November 1912 following the recommendations of the Emott Committee appointed by the British colonial authorities to study ways and means of dealing with two basic necessities. One was financing the needs of the export trade of the expatriate firms in

West Africa and the other was the eradication of the confused, inconvenient and unsatisfactory currency position in British West Africa. In doing this, the book stipulates that Fisher’s Committee which was headed by Mr. Fisher of Bank of

England inquired into the desirability and practicability of establishing a central bank in Nigeria as an instrument for promoting the economic development of the country.

Fisher did not accept the establishment of the CBN because money and capital markets were either non-existent or totally underdeveloped. After giving reasons why a Central Bank should not be established, Mr. Fisher rounded up his report thus:

I conclude that it would be inadvisable to contemplate the establishment of a central bank at the moment. It would be difficult to establish which could operate satisfactorily in such a narrow field. Moreover, it is hard to see how a central bank could function as an instrument to promote economic development of the country … Given further development of the indigenous banking system and growth in the financial mechanism, the establishment of a central bank would be a logical and useful step in due course.16

The author analyses the aim and objectives as well as the functions of the bank. The relationship between CBN and government, its relationship with other banks is equally examined. This work is relevant to the present study because it will help the researcher in historicizing CBN and its functions, and many more.

Another work by the Research Department, Central Bank is titled The

Changing Structure of the Nigerian Economy and Implications for Development.17 It 23 examines institutional developments in the financial sector in Nigeria and explores how far these institutions have assisted in intermediation. These institutions include the CBN, commercial (including innovative) and merchant banks, development banks, insurance companies, other financial institutions and markets. On the CBN which is our subject of emphasis, the work traces its origin to 1958 and stipulates that the Act establishing the Central Bank conferred on it a number of functions and powers to control the operations of banks. To appreciate the powers and performance of the CBN as well as the legal environment under which it operates, the work delves into its statutory functions, its monetary and banking policy techniques, developmental roles and supervisory roles, its relationship with the government and its role in the development of payment system. This work is significant to the study of the CBN and agricultural development because it will enhance our understanding of the functions of the CBN, especially its development functions which agricultural development belonged to.

In 1999, F. Olalusi who was an executive of the Central Bank of Nigeria published a book, Central Banking in Africa: Nigeria’s Experience,18 in which he uncovers the strengths and opportunities of the bank as well as the threats to the

Bank’s autonomy. The book also examines the contributions of the Central Bank of

Nigeria to rural development. It conceives rural development as a strategy directed at improving the economic and social life of the rural dwellers. In the area of CBN’s contributions to the development of rural areas, attention is focused on mobilization of rural funds, directive to re-invest rural funds in rural areas, Agricultural Credit

Guarantee Scheme (ACGS), and grace period on loans to agriculture, and the likes.

This work is meaningful to the present research as it acquaints the reader with the knowledge of how the CBN operates.

24

The study of F. Adekanye, The Elements of Banking in Nigeria: With

Questions and Answers,19 is also relevant to this research. The work explores the establishment and growth of the CBN. It alludes that the banking failures of the early

1950’s led to power of control of banking being vested in the Financial Secretary; this motivated the emergence of two opposing camps: the nationalists and the colonialist.

The nationalists called for the establishment of a Central Bank while the colonialists believed that it was premature to introduce a Central Bank in a country where there was no financial system. To reconcile the opposing views, a total number of three studies were commissioned namely: J. L. Fisher’s Commission, 1953, I.B.R.D

Mission Commission, 1955, and J.B. Loyne’s Commission, 1957. The report of

Fisher kicked against the establishment of a Central Bank, I.B.R.D. Mission recommended a State Bank of Nigeria to take over the banking control functions of the Financial Secretary while the last report favoured the establishment of the CBN.

The work explains the organizational structure of the bank, its functions and role in national economic policy formulation. Adekanye’s work was the first major work on banking in Nigeria that combines both statistical and structural analysis to explain issues of central banking in Nigeria which is helpful to a study on the CBN and agricultural development in North-Central Nigeria.

In his book Nigeria’s Financial System20 published in 1981, P.N. C. Okigbo reasons that the organisation of a Central Bank may differ from one country to another but in general, the functions are basically the same. The Central Bank is a government bank and adviser on financial and monetary policy. It is the only authority for the issuance of the legal tender or currency in the country. The author also examines the relationship between the Central Bank and the Ministry of Finance; he notes that the powers of the Ministry of Finance derive from two sources. The first source is juridical. These are powers conferred on it by the Constitution – under the 25

Banking Decree and the Central Bank Acts as variously amended and by the subsequent Acts and Decrees. The second source is administrative: The Head of

Government assigns to the Ministries the different portfolios. There is a fixed rule that the subjects assigned to the Ministry of Finance can only be supervised by him. In some countries, the Central Bank falls within the jurisdiction of the Minister of

Economy; in some other countries, it rests with both rather than with one of them. The work is relevant to the present study on the fact that it enriches our knowledge on the history and functions of the CBN.

Another work that is consulted for this study is an article in a CBN Bullion by

O.C. Mbutor and D.J. Yilkudi, titled “The Recent Financial Crisis and The Special

Finance Interventions by the Central Bank of Nigeria: Implications for the Real Sector of the Nigerian Economy.”21 It exposes some of the policy inadequacies in the global economy and shows the extent to which the financial innovations went ahead of regulatory provisions. The paper explains how the financial crises engulfed Nigeria. It also reviews the impact of the crises under consideration on the real sector of the various special financing intervention schemes, which the Central Bank of Nigeria

(CBN) wielded in a bid to reverse the down turn of the financial sector. These interventionist policies ranged from N200 Billion Small and Medium Enterprises

(SMEs) Credit Guarantee Scheme (SMECGS), the Commercial Agricultural Credit

Scheme (CACS), and Nigerian Incentive-Based Risk Sharing System for Agricultural

Lending (NIRSAL), N300 Billion Power and Airplane Intervention Fund (PAIF) and so forth. The authors in their quest for a coherent analysis begin by putting the financial crises into historical perspective with the view to creating the foundation to understanding how the real sector was cracked. Mbutor and Yikudi analyse in details the consequences of the crises on the Nigerian economy and society. In doing all these, the authors critically examine the objectives of each of the said interventionist 26 measure but failed completely to evaluate whether their set objectives were achieved or ended in futility. However, the present study will take the task of assessing the extent to which each policy was able to alleviate the effects of the said financial crises. However, the work is relevant because it serves as an eye opener to the understanding of the CBN polices during the global financial crises from the agricultural perspective or dimension.

S. Usman’s work, “The Central Bank of Nigeria, Rural Finance and the

Agricultural Credit Guarantee Fund”22 argues that rural finance covers the formal bank and financial institutions, Community Banks, credit unions, non-governmental organisations, self help groups, and private lenders. The study further demonstrates that as a result of deregulation, inconsistent policies, and government fiscal indiscipline that created instability in the economic system while the rural farmers suffer lack of access to credit facilities. The rural financial institutions granted credit facilities to the rural sector, the sector still faced cost escalation or inflation, foreign exchange problems, balance of payment and disequilibrium, and other related distortions. Thus, the CBN found a need to intervene in rural finance market, in order to ensure the availability of credit facilities to the rural economy.

The study reveals that from the fiscal year 1972, the CBN started to issue credit guidelines to prescribe the size of credit allocation to banks to selected sectors of the economy. In order to promote the flow of credit to agricultural sector, the CBN, through its Monetary Policy Circulars to commercial and merchant banks directed them to lend a prescribed minimum percentage of their loan portfolios to agriculture.

By so doing, the CBN gave concessional interest rates, grace periods on agricultural loans, rural banking scheme, among others, in order to make sure that the applicants benefited. The author contends that the major impact of the Agricultural Credit

27

Guarantee Scheme Fund was facilitation of credit to the rural sector. However, the fund was caught with some challenges spanning from lack of trained personnel in agricultural financing, defaults in loan repayment and low capital base of the fund and so forth. The strength of this work is seen in the conceptualization of core variables and the importance of CBN in agricultural development.

P. T. Ortese and S. Yaapera in another article titled “Funding of Food and

Agricultural Programmes in Nigeria: The Impact of Government and Credit

Institutions”23 explain that agriculture and food production seems to be important element in national-economy and human existence. The work notes that it was on the basis of the above that the then President Obasanjo’s administration placed agriculture as its first priority. The study also acknowledges that over the years, the planning, formulation and implementation of agricultural programmes and policies have not yielded positive results. In sheeding some light on this matter, the authors state that the CBN’s Annual Report for 1990 indicates that agricultural report which totalled

33.9% of all export earnings in 1970 had fallen to 1.9% in 1981. According to them, out of the country’s 71 million cultivable hectares, only 34 million hectares had been cultivated. The result of the scenario is inadequate supply of food items to the teeming population of over 100 million people, stressing that this is a pointer to serious food insecurity in the country. They further explain that the government actually intervened by instituting NAFPP, DFRRI, NALDA, and OFN yet agricultural development is still in its miniature state. The article advocates the need to provide credit lines for farmers and it emphasises some of the top-down measures introduced by the government to include (NACB) and ACGSF.

The study states that there was no problem with various methods and agencies of agricultural funding, they still stated on pages 20 – 21 that the funding of agriculture through government agencies has not been adequately workable because 28 of bribery and corruption. However, the work is relevant to the present research because it helps in the analysis of the activities of Nigerian Agricultural Cooperative

Bank (NACB) and Agricultural Credit Guarantee Scheme Fund (ACGSF) in Benue

State during the period of the study.

Also worthy of evaluation is T. T. Akaahan and N. Ayila’s article entitled,

“Transforming Peasant Agriculture: The Way Forward for Sustainable Food

Production in Nigeria”.24 It argues that peasant agriculture is the dominant source of food production in Nigeria. Operating under strenuous conditions using crude implements such as hoes and cutlasses, the peasant farmers have been able to produce adequate food for the teeming Nigerian population. The rural places in which the peasant farmers live are, however, neglected and marginalized compelling them to live in abject poverty. According to them the present poor condition of peasant farmers is as a result of several years of inconsistent, unharmonious and discontinuous government policies and a myriad of bottlenecks in form of environmental, technological and financial obstacles, which greatly hamper sustainable food production and hence, food security for the nation. To ensure adequate food supply in

Nigeria, a total transformation of the rural sector through the provision of social infrastructures, and the related options are suggested as policy measures. In order to have a direction for their arguments, the authors in question analyse a number of theoretical issues such as the Neo-Malthusian Theory, the Technological Determinant

Theory as well as the Free Market Theory. There is no need doubting that the work is a good source of understanding the Nigerian agricultural and farming situation.

U. M. Okpanachi harps his study on “Policy Options to Reposition the

Nigerian Agricultural Sector”25 in which he argues that the agricultural sector in

Nigeria is diminishing. The author traces this development back to the period of the oil windfalls in the early 70s. The chapter also examines the various efforts of 29 government, both at state and federal levels, through policies and programmes aimed at rekindling or rejuvenating the sector. The study discloses that, despite the said attempts, the agricultural sector has failed to yield the desirable result. Many of the policies and programmes failed to focus on the small farm holder. Agricultural extension which would have translated the essence of the programmes to the small holder was entrenched in the programme. Access to farm inputs and credit were equally denied the peasants under some of the schemes. In this wise, the chapter calls for a re-visitation of training and visit extension system, and many more. The work is useful for the reconstruction of issues in agriculture in Benue State.

A. G. Umar, P.C. Obiaga, O. E. Nwafor, O. Owa, A. Mbah, C. Akalumhe &

U. Maimuna26 in their work “Potentials and Challenges of Community Banks in

Agribusiness Financing For Small Farmers in Jos South Local Government Area of

Plateau State” argue that capital is regarded as a major factor for expanding production and modernizing agriculture. The need to provide it to farmers is inevitable because it is an instrument in fostering agricultural development and for improving efficiency in the production process. The contemporary practice of agriculture requires capital support which is a handicap to small farmers.

The authors employ the use of descriptive statistics to analyse demographic characteristics of the study while inferential statistics was adopted to test the hypotheses of the study. Findings reveal that majority of the farmers are yet to benefit from Community Banks (CBs) (88%). Farmers still adopt manual method of operation. The results of the study show that information gap, inadequate and untimely supply of inputs of production, time of loan disburse, value of loan package are all statistically significant to sourcing of credit from the bank by farmers. The study recommends that farmer friendly banking policy be adopted to encourage farmers to patronize CBs. The article is relevant to this research because it unveils the 30 challenges associated with CBs in the course of agricultural development, which this study tackles in chapter four.

In the article titled “The Role of Financial Institutions in Financing of

Agriculture in Nigeria”,27 I. M. Polycarp, A. J. Jirgi & M. M. Dikwal anchor their analysis on agriculture and the Central Bank of Nigeria. Just like many other reviewed sources, they recognise the relevance of agriculture as it provides rural employment, family food and export earnings despite the discovery of oil. The above depicts that at independence in 1960, little was known of petroleum as a source of revenue to the Nigerian economy. In order to give a critical analysis of issues, the study adopts descriptive statistics (frequencies and percentages) to classify agricultural loans issued and guaranteed and repaid by farmers. The chapter investigates the trends of agricultural loans issued, guaranteed and repaid by farmers by year, purpose, bank and sector. The study analyses the instruments adopted by

CBN in its quest for agricultural development in Nigeria.

In doing this, their strength and weaknesses have been exposed. It concludes that financial institutions in pursuance of their traditional role have been involved in financing of agriculture, it becomes necessary in order to resuscitate the dwindling sector. In this respect, the authors suggest that awareness campaign by extension agencies should be intensified to educate farmers on how to obtain agricultural loans and rightly utilized them. The work is vital to our study because it discusses some aspects of agricultural development in Nigeria emphasising on the role of the Central

Bank of Nigeria. This work is also fundamental as it presents some fact in words, statistics, graphs, and bar charts which would facilitate our understanding of the phenomenon.

In his “Five Decade of Agricultural Policies in Nigeria: What Roles Has

Statistics Played?”28 O.L. Akinboyo upholds that one of the basic challenges facing 31 mankind is to get the basic necessities of life and also to ensure food security. The author approaches food security from the perspective in which majority of the populace of the country have access to domestically produced goods at affordable prices all times. In his bid to explain the relevance of agriculture, Akinboyo lays credence that the development of any nation depends, to a large extent, on agricultural sector, the reason being that industrial raw material enterprises depend on undertakings of agricultural development to produce the raw materials that are transformed, using human resources, into capital goods. With the discovery of oil at

Oloibiri (Bayelsa State) in 1959, agricultural production continues to lay behind as a source of foreign exchange earnings for the nation. The study contends that to address this challenge, successive administrations in the country from 1960 to date put in place several food policies aimed at making the sub-sector take its rightful place.

According to the Akinboyo, it was against this backdrop that, President Umaru Musa

Yar’Adua made “food security and agriculture” one of his cannons in his seven point

Agenda. In analyzing the issues under consideration, the author attempts a conceptual explication of the key term that is agriculture. He also analyses agricultural policies in the country starting from 1964 under the administration of Alhaji Tafawa Balewa.

The author extends his analysis to cover the role of statistics in agricultural growth.

The work equally notes the challenges impeding agricultural development under four major subheadings of technical constraints, resource constraints, socio-economic constraints and organizational constraints. The study attempts a good deal in explaining the concept of agriculture which will enable us to draw references to our conceptual clarifications. It also enhances our understanding of the challenges encountered in the process of agricultural development in Benue State despite the intervention of the CBN.

32

Federal Ministry of Information, Third National Development Plan 1975 –

197929 also hinges on economic planning. The Third National Development Plan posits that the overall strategy of the plan was to use oil resources to create the infrastructure for self-sustained growth. Subsequently, the plan introduced a combination of conventional policy measures and institutional re-organisation in pursuance of it objectives. Some of the measures included the creation of nine River

Basin Development Authorities (RBDAs), Operation Feed the Nation (OFN), setting up of the Commodity Marketing Boards (CMBs), a Fertilizer Board ((FB), and the

Agricultural Credit Guarantee Scheme Fund (ACGSF). Also established were the

National Grains Production Company (NGPC), the National Roots Production

Company (NRPC), and the Rural Integrated Agricultural Development Projects

(ADPs). The Third National Development Plan, however, also failed to impact on the citizenry. The work is relevant to the present thesis because it helps in our understanding of the ACGSF, the first CBN’s agricultural development intervention.

G. O. Evbuomwan’s article titled “Financing Agri-Business in Nigeria:

Challenges and Prospects”30 shows that it is generally agreed among researchers and policy makers that poor rural households in developing countries lack adequate access to credit. The lack of adequate access to credit is in turn believed to have significant negative consequences for various aggregate and household-level outcomes, technology adoption, agricultural productivity, food security, health, and overall household welfare. In a bid to increase farmers’ access to credit facilities and hence stimulate increased agricultural output, various credit initiatives were put in place by the CBN in tandem with the Nigerian Government. Among these were the establishment of the Nigerian Agricultural and Cooperative Bank (NACB) in 1972, the Agricultural Credit Guarantee Scheme Fund (ACGSF) in 1977 and more recently the Small and Medium Scale Equity Investment Scheme (SMIEIS). 33

The author argues that, despite these efforts by government, agricultural output has not increased significantly in recent years. Aggregate Index of Agricultural

Production which recorded a negative 0.9 per cent average growth rate between 1970 and 1985 has improved substantially to 9.0 per cent between 1986 and 1993 but had since stagnated at an average annual growth rate of 3 to 4 per cent. The work discloses that, some authors have maintained that access to credit by small scale farmers who dominate the Nigerian agricultural sector is a major constraint militating against increased agricultural productivity, while others believe that the high cost of credit is the problem. This work is relevant to the present study because it shows that government can collaborate with the CBN to enhance agricultural development.

S. Muhammad, S. Idi, M. I. Malumfashi & S. A. Musa’s chapter contribution on “Commercial Banks and Agricultural Funding in Gombe State Nigeria”,31 stresses that, in spite of the spread of commercial banks in Nigeria, their impact in relation to agricultural financing is minimally felt. The work examines the performance of this category of banks in financing agriculture in Gombe State. Six commercial banks and one hundred and ten sampled farmers were considered for the study. The data were collected using questionnaires and the analysis was done using descriptive statistics and chi-square techniques. The result showed that 83.4 per cent of the banks in the state partake in financing agriculture.

The sampled farmers had a mean age of 47.3 years and only 3 per cent of them claimed never been to school. The study indicates that collateral and viability of project were the most important considerations for loan approval and disbursement.

Furthermore, chi-square analysis revealed significant difference between loan applications and disbursement at 1 per cent level of significance. The chapter identifies problems faced by the bank in the quest for agricultural development to include default, loan diversions, high cost of supervisions, among others. Thus, their 34 performance in financing agricultural endeavours left so many things to be desired.

This calls for the removal of the constraints, hence the pursuance of supplementary policies to induce greater participation is necessary. The work helps us to know that commercial banks encountered challenges in the course of agricultural development, and that led to its minimal contribution to agricultural development in Nigeria including Benue State.

C. N. O. Mordi, A. Englama & B. S. Adebusuyi in a book titled The Changing

Structure of the Nigerian Economy32 studied specialised financial institutions that enhanced agricultural development in Nigeria. The book emphasises on specialised lending and support institutions such as the Nigerian Agricultural and Cooperative

Bank (NACB) and the Nigerian Insurance Company (NAIC) which were established in 1973 and 1987, respectively to increase supply and access to credit through concessional lending conditions. The work also discusses the establishment of

Commercial Credit Guarantee Scheme Fund and Rural Banking Scheme. In doing these, it traces the origins and the role of stakeholders in the aforementioned institutions.

The study indicates that, most of the CBN’s agricultural development programmes were operated in tandem with the Federal Government of Nigeria (FGN).

The FGN subscribed 60 per cent of the capital while the CBN which is saddled with the responsibility of developing the Nigerian economy usually subscribed 40 per cent of the capital. The study explains how CBN’s agricultural development schemes impacted positively on agricultural development in Nigeria (Benue State inclusive).

This book is relevant because it discusses the role of CBN in agricultural development. The major pitfall of this book is that, the authors discuss rural banking scheme to the neglect of the Peoples’ Bank of Nigeria (PBN); attention was only focused on Community Banks (CBs). However, the present study fills the gap. 35

In his work, M. L. Bello, “Reflections on Poverty-Reduction Strategies”33 traces the history of poverty reduction in Nigeria to the development plans of the colonial era. He opines that Nigeria’s economic crisis of the early 1980’s which affected the social sector informed government at various levels to launch programmes with defined strategies to tackle the challenges bedevilling all the sectors including agriculture. The author isolates the following strategies: Operation Feed the

Nation (OFN), Directorate of Food, Road and Rural Infrastructure (DFRRI), Green

Revolution (GR), Family Support Programme (FSP), National Directorate of

Employment (NDE), and so forth.

The relevance of Bello’s work to the present study is that some of the above enumerated measures of poverty reduction were also agricultural policies and programmes which a chapter of this work is devoted to analysing. In order words, the study examines the impact of the programmes even when such impact is at an insignificant level. However, the author fails to give a detailed statistical analysis with regards to the activities of the programmes.

In like manner, S. E. Akiri’s journal article entitled, “An Assessment of

Poverty Alleviation Programmes in Nigeria”,34 attempts an evaluation of poverty reduction programmes in Nigeria beginning from 1972 when National Accelerated

Programme (NAFPP) was launched, to the most recent National Poverty Reduction

Programme (NAPEP) 2000. In assessing these strategies, Akiri points at the National

Directorate of Employment (NDE), which was created in 1986, Vocational skills

Development Programme (VSDP). He notes that the Peoples Bank and Community

Bank were created for the same purpose, though they failed to achieve their aim. He equally traces the origin of the (DFRRI) and gave it a rosy picture as thus:

DFRRI had tremendous impact on rural areas. For example, between the time of its inception in 1986 and 1993 DFRRI had completed over 278,526km of road and over 5,000 rural communities benefited from 36

its rural electrification programme. Furthermore, DFRRI impacted positively on food production as there was a significant rise in agricultural output as shown by the index of agricultural production between 1986 – 1993, as is been shown by the CBN Statistical Bulletin.35

The representation above shows that DFRRI actually impacted on the rural economy of Nigeria in diverse ways including agricultural development. Akiri also beams his search light to the Better Life Programme for Rural Women (BLPRW), Peoples’

Bank of Nigeria (PBN), Community Bank (CB), and the Family Support Programme

(FSP). He argues that the BLPRW formed 11,373 women cooperatives, established

3,613 processing mills as well as distributed agricultural inputs, especially fertilizers to women in 1993. Akiri’s work is vital to the present study in that it helps us to weigh the performances of the poverty reduction programmes especially those that are agriculturally based.

In his contribution on “Poverty Reduction Programmes and the challenge of sustainable Socio-Economic Development in Nigeria”,36 J. E. Agaba shows that poverty reduction is now an overriding goal for government and international donors, and its centrality was reconfirmed at the Millennium submit in 2000 and the United

Nations Conference on Sustainable Development in Rio de Janeiro, 2012 dubbed Rio

+ 20. The author argues that it was the afore-stated conferences that gave impetus to the Nigerian government to initiate many programmes aiming at poverty reduction.

To be critical in his analysis, Agaba clarifies the concepts of poverty, development and sustainable development with emphasis that poverty is a multidimensional and dynamic phenomenon. Poverty in all its ramifications is unwholesome. The article approaches development as a concept that deals with change or progress in living standard of people over a period of time. It becomes sustainable when this change does not compromise the quality of life of the future generation. The author proceeds and x-rays the poverty situation in Nigeria and the challenge of sustainable socio- 37

economic development. Here, he emphasised that since the implementation of the

Structural Adjustment Programme (SAP) in 1980s, the poverty level in Nigeria and

Africa have been greatly increased. The study explains the manifestations and

dimensions of poverty, which later informed the establishment of NACRD, ACGSF,

RBS, DFFRI, PBN, ADP, and so forth, in order to revamp many sectors including

agriculture for the purpose of bettering the living standard of Nigeria, including

Benue State. Agaba’s study is relevant to this thesis in that it helps us to understand

that some poverty reduction programmes are agents of agricultural development such

as NACRDS and ACGSF, among others.

2.4 Related Literature on Benue State

A. Ocholi and M.Y. Amodu’s article, “A comparative analysis of the

performance of Selected Rural Banks in enhancing Agricultural Development in

Benue State, Nigeria: 2010-2012”37 discusses the rise and fall of informal rural

financial markets that were established before the introduction of rural banking

scheme in Nigeria. The work argues that these informal bank granted loan facilities to

rural population at various charges to enable them meet up with their needs. The study

contends that such markets were often made up of different savers and lenders, thrift

cooperatives and credit societies, Esusu group, merchants’ relatives and friends.

These informal financial markets faced with a lot of challenges that hindered their

effective operation, therefore, making their impact to minimal and imperfect. The

imperfection and inefficiency which characterized their services underscored the need

for formal rural financial market such as rural banking.

The study further argues that government believes that if the financial market

is left on its own, the flow of rural credit will be jeopardised, hence government

intervention in rural financial markets through the Central Bank of Nigeria (CBN).

The CBN initially adopted oral persuasion by appealing to banks to open up branches 38 in rural areas to help particularly in agricultural development. It later gave approval to banks who requested to open branches in rural areas and rejected the proposals of those who wanted to open new branches in urban areas. The work traces the origin of rural banking and showcases the number of banks that participated under the scheme.

In doing this, it shows the extent of their achievements in Benue State with the aid of statistical tool. It explains the challenges encountered by the rural banking scheme as the reason while it was phased out. This article is significant to this study because it has unveiled the role of CBN in Rural Banking, challenges and failures. It is relevant to the discussion on rural banking as in chapter four of the thesis.

E. A. Enenche, B. S. Ohen and G. E. Umeze, in their contribution captioned

“The Effect of Agricultural credit Guarantee scheme fund (ACGSF) on production efficiency of rural farmers in Benue State Nigeria”38 argue that Agricultural Credit

Guarantee Scheme Fund is one of the laudable programmes put in place by the

Federal Government of Nigeria (FGN) to boost agricultural production, generate revenue for the farmers, alleviate poverty and earn foreign exchange for the country.

The authors show that the ACGSF also aimed at ensuring food security, rural transportation and improved notional health profile of the citizens. The study also deals with the socio-economic characteristics of beneficiaries of ACGSF in Benue

State. It further analysis the resource use efficiency of beneficiary, and assesses the effects of the scheme on poverty alleviation in Benue State.

This article is relevant to the present study in that it helps in the ACGSF on the economy and society of Benue State. The limitation of this work lies in the fact that the authors ignored the co-role of CBN in the formation and financing of ACGSF.

They gave whole credit to the FGN. But in the real sense, the FGN contributes 60 per

39 cent while the CBN contributes 40 per cent of the fund for financing the scheme, as shown in chapter four of the study.

S. Dauda, J. A. Anum and M. C. Madukwe in their journal article “The

Extension Capacity of Benue State Agricultural and Rural Development Authority”39 discuss the functions of BNARDA and investigate the extension capacity of Benue

Agricultural and Rural Development Authority (BNARDA). One hundred village

Extension Agents (VEAs) and twenty headquarter and zonal management staff were sampled for the study. A structural questionnaire was used to collect data from management of field extension workers. The authors employ percentage and ratio as statistical tools for data analysis. The findings revealed that the agency (BNARDA) has not met the recommended agent to farmers’ ratio. This is to say that BNARDA had not performed it statutory duties to the desirable standard. This work is relevant to the present study as it helps us to understand the functions of BNARDA to agricultural development in Benue State. The inability of the agency under review to meet up with its statutory obligations shows that agriculture in Benue State is characterised with challenges.

Two other scholars, A. S. Ngutsav and T. T. Akaahan attempted to account for the phenomenon of agriculture under the topic “Self Help Groups Linkages as

Panacea for Declining Food Production in Benue State”.40 They have made it glaring that the agricultural sector is dominated by the small holder producers who are rural dwellers and poor. Most of them do not have access to the formal financial institutions to boost their farming activities. This is so because most of the commercial and merchant banks are reluctant to offer them credit because of a plethora of factors, namely: high risk owing to natural hazards, lack of collaterals and default in payment, to mention just a few.

40

The work states that in order to overcome this teething problem, rural dwellers should form themselves into cooperative societies, what they called labour gangs, to help each other in carrying out farming and task themselves collectively, to meet individual economic needs by distributing benefit in turns. These Self Help Groups

(SHGs) are known by various names such as Igba-Utu, Esusu, bam, Adashi, Ajo,

Susu, and so forth, in different parts of the country. The savings of these self help groups are either shared at festival times like Christmas or at the beginning of farming seasons for the procurement of farm inputs. These savings may be let out to each member on a rational basis. Despite that, the authors argue that these savings are usually small given the income of rural dwellers. It was in realisation of this that the

CBN introduced SHGs linkages to facilitate the meeting of credit needs of the rural dwellers. In doing this the contributors or co-operators adopt the operations of the conventional banking institutions. The work isolates the many self help groups existing in Benue State spanning from Dura Self Help Groups, Ugbema; Orngudwen

Farmers Cooperative Society; Jukun Fishers Groups, Wurukum; Dzar Cooperative

Farmers Association; Mbayawe Farmers Association; Ati Family Farmers

Association, and very many others and assess their impact on the economy and society of the people. This work is useful because, it gives insights into the various strategies the CBN and farmers adopted to develop agriculture.

U.A. Gbileve’s work titled, “A History of Agricultural Development Company in Benue State, 1977-2007”41 posits that, agricultural development provides the fulcrum on which the economic development of societies is pivoted. It also plays critical roles in food security, poverty reduction and indeed sustained economic growth. The study reveals that the strategic importance of agricultural development motivated the establishment Agricultural Development Company (ADC) for purposes of promoting agricultural development in Benue State. The study explores the 41 operational dynamics of agricultural development in the study area identifying the problems militating against agricultural development in the state. The study highlighted the comparative advantage of the company in terms of natural resources endowment in the state, The Socio-economic gaps filled by the company, its decline and failures. Gbileve’s study recommends possible ways of profit operations. It concludes that given the correct diagnosis of food problems in Benue State, organizations like ADC can with efficient management solve the problem of food shortage in the state. The work is relevant to the present study because it enhanced the understanding ADC, an aspect of Benue agricultural development policies. In spite of the relevance to this study, the work fails short of details.

H.T. Ahom’s thesis entitled “A History of Land Conflict and Agricultural

Production in Southern Tivland, 1912-2008” 42 notes that the Southern part of Tivland has a thriving agricultural economy specializing in tree drop farming. The economy is thus dependent on land. However, the area has been bedevilled by recurring land conflicts which have direct bearing on the economy due to its relations with land. The study unravels the pre-colonial, colonial and post colonial agricultural policies in the area under review. The work shows that in all historical epochs, land occupies the centre of economic activities of the people of Southern Tiv area. The study found that the economic activities are paralysed in the areas affected by conflict in Southern

Tivland. This is as a result of the destruction of physical infrastructure such as houses, market squares and other economic sectors. The study states that during conflicts, all economic activities cease because of safety, however, as soon as conflicts ended, all people resumed to their daily economic activities. The relevance of this work to the present study is that it helps our understanding of Benue State agricultural development policies since 1976 as contained in chapter three of the present study.

42

T. T. Ityonzughul’s work on, “A History of Co-operative Societies in the

Socio-Economic Development of Southern Tivland, 1960-2010”, 43 argues that one of the challenges that face any modern economy is the achievement and sustenance of socio-economic development with the ultimate objective of enhancing the welfare of its citizens. The author argues that in order to achieve this lofty objective, the formation of co-operative societies became pertinent. These co-operatives are being affected by both the co-operators and the government. Co-operators usually pool down together some money and lend to individuals at concessional interest. The dissertation discusses the role of government in the development of co-operative societies and focuses on the establishment of NACRDB, NACB, and the training of co-operators, among others. It should be noted that the said financial institutions are agricultural based and most of the beneficiaries of their credit facilities are farmers who are rural dwellers. In analyzing his research issues, Ityonzughul traces the origins and success of the above financial measure put in place by the government. The study provides a leeway for the present research in investigating the origins and assessing the agricultural policies or programmes inform of the financial institutions.

Also, worthy of review is T. P. Agba’s Ph.D thesis on the topic, “A History of

Poverty Reduction Programmes in Tivland, 1986-2010”.44 He takes a historical perspective of poverty reduction programmes in Tivland. In doing this, the study acknowledges that research works on poverty became prominent among scholars beginning from the 1940’s especially at the end of the Second World War. It is the contention of the author that many governments across the globe upon the end of the

WW II started creating avenues to discuss development and do away with poverty.

Nigeria too took a cue from these countries in order to better her standard of living.

To enhance a critical argument in his thesis, Agba acknowledges that, poverty is seen from different perspectives, it lacks specificity, and it cannot be subjected to a single 43 explanation. In giving his analysis, he notes that V. E. Dike alludes that “poverty has narrow and broad definitions, partly because, it is a physical matter, and partly because poverty is relative”.45 In his opinion, Dike reiterates that, it is physical because its effects are felt on those afflicted by it, and it is relative because a poor person in one country may not be perceived as such in another country. He equally exposes the views of other numerous scholars concerning the subject matter. The work proceeds and chronicles the poverty reduction measures in Tivland starting from

1960 to 1985. Here, the work points to LBRDA, OFN, GRP, among others. The work also discusses the poverty reduction programmes in Tivland during the SAP to 1999 and included ND, Benue Rural Development Agency (BERDA); BLPRW, and FSP,

PBN, CB, and many more. It is fundamental to note that the first poverty reduction measures in the study area from 1960 to 1985 are crucial to this study in that they facilitates our understanding of the agricultural policies in our study area hence some of them were agriculturally based in nature. The research focuses on Tivland but he

(Agba) generalised his statistics on Nigeria at large, he should have done a modification to focus at least on some of his study area.

B.T. Ashaver’s work “Benue State Agriculture”46 contends that Benue State is endowed with agriculture and about 80 per cent of the total population depends on agriculture for their sustenance and livelihood. The work notes that the state has favourable climatic conditions and fertile soils conducive for the rearing of animals and cultivation of virtually all crops grown in Nigeria. Most prominent among the animals reared are pigs, goats, poultry and cattle. The major crops grown are cassava, yam, rice soya beans, sesame, maize, citrus, mangoes, vegetables, and sugarcane, among others. The work reveals that, there is also available large capacity for fish production as a result of wide expanse of natural water bodies in the state. It also investigates the state of agriculture in Benue State and found that the state’s 44 agriculture is characterized by subsistence agriculture with limited mechanization being practiced by farmers; poor crop yield per hectare; poor market for agricultural produce, inadequate extension services; and inadequate farm inputs, among others. As a result of these challenges, the state government has intervened by establishing

Benue Tractor Hiring Agency (BENTHA), Taraku Mills Nigeria Limited, Benue State

Agricultural and Rural Development Agency (BENARDA), among others. Their work is relevant o the present study as it helps in analyzing the state of Benue agriculture and its policies.

B. W. Yio in his work, “A History of Industrial Development Initiatives in

Benue State, 1976 – 2011”47 is a relevant thesis which examines the numerous past administrations in Benue State, paying attention to their industrial initiatives including agro-mills. The work notes that J. D. Jang launched the Benue Agricultural

Development Programme which was aimed at improving the small scale farmers through improved technological services, among others. Yio argues that, the idea of establishing an agro-allied industry was conceived and executed by the late Governor

Aper Aku in 1982. It was aimed at processing some grains like soya bean, maize and groundnut into finished products, provides employment to the youth, gives farmers better prices for their farm produce and encouraged them to produce more. The work explains the financial capacity of Taraku Mills at its inception to be ₤56,000,480.000 loan. The thesis explains the challenges associated with the company to include mismanagement, inadequate capital, high debt profile, government interference, and so forth.

The work emphasises that during Governor Akume’s tenure, the company obtained a lot of loans to enable it sustain production, but it was during his time that the company was rather closed down before it was reopened. He insists that most of

45 the loans that were obtained were controlled by the Ministry of Commerce and

Industries and that of Finance. The author tabulates how these loans were spent, not on the priority of the company. The study also shows that CBN enhanced the growth of agro-allied industries in Benue State. This was done through the CBN’s

Commercial Agriculture Credit Scheme (CACS). The platform provided credit facilities to large agro-industries. In Benue State the beneficiaries were Miva Rice

Nigeria, Ltd, Terago Commodities Ltd and Hule & Sons Nig. Ltd.

The relevance of the work is that, it helps the understanding of the landmark created by Hule and Sons Nig. Ltd in agricultural development in Benue State of

Nigerian Region. The major challenge with Yio’s work is that he analyses how the

Taraku Mills Ltd obtained loans for its industrial purpose but rather spent it half- hazardly. Yet, the work did not suggest policy options in order to prevent such occurrence in the future time. The work also contains few errors of expression and orthography.

It is worthwhile to note that some of the reviewed literature was written on the theme Central Bank and agriculture generally but not that of Benue State in particular; however, they treat matters related to Central Bank and in a way provided facts concerning our study.

From the attempts at a critical review of available literature on issues of

Central Bank of Nigeria and Agricultural Development in Benue State, it is fairy accurate to state that up to the time of this study, there is near absence of historical work on this aspect of history in Benue State. Scholars who have devoted their time and resources on the study of issues in banking focused on other banks such as Banks of Agriculture and Commercial Banks to the neglect of CBN and agricultural development. This study, therefore, fills the vacuum created by previous researchers.

46

2.5 Conceptual Clarifications

In addressing the subject matter of this thesis, it is useful that the relevant

concepts are clarified. It is only against a background of such a clarification that the

issues raised and discussed shall be properly grasped. The concepts brought under

consideration here are bank, central bank, agriculture, development, agricultural

development, Bank of Agriculture, Community Bank (Microfinace Bank),

Agricultural Credit Guarantee Scheme Fund, Rural Banking Scheme and Commercial

Agriculture Credit Scheme.

A bank is any business offering deposits subject to withdrawal on demand

(such as by writing a cheque or making an electronic transfer of funds) and making

loans of a commercial or business nature (such as forecasting credit to private

business seeking to expand the inventory of goods and their shelves or purchase and

equipment).48 The U.S Congress then defined a bank as any institution that could

qualify for deposit insurance administered by the Federal Deposit Insurance

Corporation (FDIC).49 To add, under Federal Law in the United States a bank is

defined, not so much by its array of service offerings, but by the government agency

insuring its deposits.50 However, S. Dignen conceives bank as: “A business that

makes its profit by paying interest to people who keep money there and charging a

higher rate of interest to borrowers who borrow money from the bank”.51 It should be

noted that the preceding definition is faulty, in that its conceptualization of bank is

focused only on the monetary aspect to the neglect of accepting, collecting, and

keeping of other valuables such as wills and credentials. In the context of this study, a

bank is a financial institution saddled with the responsibility of accepting deposit,

cheques, and other valuable goods and documents like wills, and others for safe

keeping, withdrawal, as well as issuance of interest using electronic means.

47

Extrapolating from the above analysis, it is worthwhile to shed some light on the concept of Central Bank. Scholars have written extensively on the concept of

Central Bank. For example, Sullivian and Sheffring contend that there is no single standard terminology for the name of Central Bank, but many countries use “Bank of

Country” form.52 For instance, the Bank of England, Bank of Canada, and Bank of

Mexico, among others. Contributing on this matter, S. Dignen declares that:

A Central Bank is the official bank of a country, which is responsible for setting interest rates, controlling the money supply, producing bank notes and making them available, and keeping the country’s supply of foreign currency and gold et cetera.53

The above representation looks at the Central Bank in isolation with other roles of the bank such as its developmental functions including agricultural development.

Contributing on this matter, The New Encyclopedia Britannica, Vol. 3 rightly notes that:

A central bank is an institution, such as the Bank of England, the U.S. Federal Reserve System, the Bank of France, or the Bank of Japan, that is charged with regulating the size of a nation’s money supply, the availability and cost of credit, and foreign-exchange value of its currency. Regulation of the availability and cost of credit may be non selective or may be designed to influence the distribution of credit among competing uses. The principal objective of a modern central bank in carrying out these functions are to maintain money and credit conditions conducive to a higher level of employment and production, a reasonable stable level of domestic prices, an adequate level of international reserve.54

The above depicts the meaning of Central Bank in modern or contemporary times and that all countries of the world have a Central Bank with distinct name. In conceptualisation of Central Bank, E. S. Ezekiel further illuminates: “A Central Bank is a bank that a government sets up to help handle its transactions, to co-ordinate and control banks, most especially; and most importantly to help the nation’s money supply and credit conditions”.55 The weakness of this definitions of Central Bank is that, it did not spell out the traditional and the developmental functions of the CBN. It

48 should be recognised that apart from the core functions of the CBN such as issuance of legal tender, maintenance of the external reserves to safeguard the internal value of the currency, among others; the bank also performs developmental functions like agricultural financing, supervisory function, and very many others. In like manner, F.

Adekanye notes that:

A Central Bank stands at the apex of the banking system of every country. It is the government representative in the banking sector and acts mainly as a banker to the government. It is a very close association with both the government and the banking sector of the economy, advising the government on monetary policy and implementing the policy on behalf of the government.56

Above citation reflects the contents and the function of a Central Bank. Adekanye goes on indicating the main differences between the Central Bank and a commercial bank as summarized as follows: i. The maximisation of profits is one of the main objectives of a commercial

bank, but a Central Bank does not aim to maximize profits. ii. Commercial bank serves as bankers to their customers, while the Central Bank

serves as banker to commercial banks, acting as lender of last resort to the

banking system. iii. Apart from serving as banker to commercial banks, the Central Bank has a

supervisory role over the commercial banks and other financial institutions. iv. By virtue of the statutory powers vested on the Central bank by the

government, it controls the actions of the banks and other financial

institutions, particularly with regard to lending. v. The control and issuance of currency notes and coins are vested on the Central

Bank, thus giving it the power to regulate the supply of money. vi. In view of its privileged position, the Central Bank does not compete for

business with the commercial banks. Apart from the Federal and State

49

Government accounts which are usually maintained by it, the Central Bank of

Nigeria does not provide banking services for personal and commercial

customers which is the main business of commercial and merchant abnks.57

Agriculture on the other hand, is a late Middle English adoption of Latin gricultua, from ager, “field” and cultura “cultivation” or “growing”.58 Agriculture usually refers to human activities, although, it is also observed in certain species of ant, termite and ambosia beetle.59 To practice agriculture means to use natural resources to “produce commodities which maintain life including food, fibre, forest products, horticultural crops and their related services”.60 Related to the above definition, agriculture is conceived as the production of food, fibre, feed and other goods by the systematic growing and harvesting of plants and animals.61 It is the science of making use of land to raise plants and animals. It is the simplification of nature’s food webs and rechanneling of energy for human and plant.62

The concept of development, on the other hand, is one of the most controversial in academic discourse. There are conflicting definitions and interpretations of the term. These definitions and interpretations are influenced by history, discipline, ideological orientation and training. In fact, the post development school argues that the term is unjust, has never worked and should be dismantled.63 R.

Chambers defines development as “good change”.64 This definition envisages that development is synonymous with progress. This progress should entail an all- encompassing improvement, a process that builds on itself and involve both individuals and social change.65

However, various scholars have pointed out that, development should be conceptually differentiated from progress. According to A. Thomas,

progress implies continual development reaching higher and higher levels perhaps without limit, whereas development, as an analogy from development of living organism, implies moving towards the 50

fulfilment of a potential. Immanent development means a spontaneous and unconscious process of development from within, which may entail destruction of the old in other to achieve the new. International development implies deliberate efforts to achieve higher level in terms of set objectives.66 Relatedly, A. Sen sees development as the process of expanding the real freedoms that people enjoy. According to him, development requires the removal of major sources of unfreedom; poverty as well as tyranny, poor economic opportunities as well as systematic social deprivation, neglect of public facilities as well as intolerance or over-activity of repressive states.67 In this conceptualisation, freedom is central to the process of development and the achievement of development is dependent on the free agency of the people. For the people to be agents of their own develop require advancement five distinct type of freedom namely; political freedom, economic facilities, social opportunities, transparency guarantees, and protective security.

Development is a condition of pulling a particular society or a people from their human nature of servitude. In Todaro’s work, Dudley advances the basic question about the meaning of development succinctly when he states as follows:

The question to ask about a countries development is therefore: what has been happening to poverty? What has been happening to unemployment? And has been happening to inequality?68 If there is improvement in the level of poverty, unemployment and inequality then the country or society could be said to be developing or has attained development. D.

Goulet, cited in G. Rist, portrays the concepts of underdevelopment and development as follows:

The condition of underdevelopment in its totality is thus a consciously experienced state of deprivation rendered especially intolerable as more and more people acquire information about the development of other societies and realise that technical and institutional means for abolishing poverty, misery and disease do indeed exist.69 He further states:

51

Development must therefore be conceived of as a multidimensional process which involves major changes in social structures, popular attitudes and national institutions as well as the acceleration of economic growth, the reduction of inequality and the eradications of absolute poverty.70 Arising from the above definitions, the researcher views development, in the context of this work, as the growth that occurs in the production and output of crop yield.

Thus, agricultural development refers to the gradual shift to farming best practices. It also means providing assistance to the crop producers with the help of various agricultural resources.71 Providing protection, assisting in the research sphere, employing latest techniques, controlling pest, and facilitating diversity all fall within the purview of agricultural development. Agricultural development also includes rotational grazing which extends benefits for the protection of natural resources, utilization of forage crops rightly through the growth season, quality production and also the flow of cash.72 The term agricultural development also denotes the production of crops and the raising of livestock, large and small.73

According to Z. K. A. Bonat, agricultural development in its modern sense began in Europe, in a process that has been described as an agricultural revolution.74

One of the leading authorities on the list of agricultural transformation in Europe P.

Bairoch, states that: “Agricultural development involves a significant and permanent rise in (agricultural) productivity, which emanated from profound modifications in the conditions of agricultural production”.75 Agricultural development has thus become synonymous with “increase in productivity” on a sustained basis.76 In the context of this study, agricultural development implies the positive changes or improvement in the agricultural activities in Benue State as a result of the Central Bank of Nigeria’s interventionist role.

The Central Bank of Nigeria conceives the Bank of Agriculture (BOA) as a type of bank that lends money to farmers for longer periods of time and charges them 52 less interest than other types of banks.77 In his words, Adesina (an Economist and

Social Commentator) succinctly opines that, Bank of Agriculture is the bank that lends money to individuals, basically farmers, often over a long period of time and at low rates of interest. 78 For the purposes of this study, Bank of Agriculture refers to the financial intermediary between Central Bank of Nigeria and farmers for the purposes of boosting agriculture in Benue State and even beyond. The Bank traines farmers on new farming methods, provides farm inputs and supervises the farmers in the course of their productive activities.

Community Bank is a self-sustaining financial institution, owned and managed by a community, for the purpose of providing credit, banking and other financial services to its members, largely on the basis of their self recognition and credit worthiness.79 In the Federal Budget of 1990, it was stated that “a community bank is a commercial bank serving only community and exploring to the fullest its advantageous position of local knowledge and trust…Each community bank by serving its particular area… will greatly strengthen the massive programmes of government in the rural development”. Community banks are unit banks independent of each other with the main thrust to mobile savings from the community for on- lending for the development of the community.80 Community Bank is also known as

Microfinance Bank. Echo Microfinance Bank views Microfinance Bank as:

Any Company licensed by the Central Bank of Nigeria (CBN) to carry on business of providing microfinance services such as savings, loans, domestic funds transfer and other financial services that are needed by the economically active poor, micro, small and medium enterprises to conduct or expand to their businesses as defined in the guidelines for Microfinance Banks in Nigeria.81

Microfinance Bank could also be understood as that bank that offers skeletal or mini financial services to the rural and urban poor as well as the emerging business men and women from all shades of life gearing toward improving their financial status or 53 their economic lot. Agricultural Credit Guarantee Scheme Fund refers to the CBN-

Federal Government first agricultural development initiative that was aimed primarily at providing loans to farmers in order to enhance their productivities.

Rural Banking Scheme is that type of banking scheme that was introduced primarily to inculcate the habit of banking in rural dwellers, reduce rural migration to urban areas, monetise rural areas, mobilise savings for profitable, investment, promote

Agro-Allied industries for food self-sufficiency and to provide employment for rural dwellers.82 Deducing from the above, this study approaches Rural Banking as the

CBN’s initiative to reach out with banking services to the rural dwellers who are usually farmers and petty traders or businessmen and businesswomen.

The Commercial Agriculture Credit Scheme (CACS) is a sub-component of the Federal Government of Nigeria’s Commercial Agriculture Development

Programme (CADP) financed from the proceeds of the N200 Billion seven (7) year bond raised by the Debt Management Office. The fund is made available to participating banks to finance commercial agricultural enterprises at a maximum interest rate of 9 per cent. In addition, each State Government could borrow up to

N1.0 Billion for on-lending to farmers’ cooperative societies and other areas of agricultural development provided such initiatives/interventions are in line with the objectives of CACS. 83

Peoples Bank of Nigeria is conceptualised as non-conventional bank established to provide specialized services for the poor. The bank was non- conventional because its capital base was wholly provided by the government and it was exempted from all Banking Act regulations.84The understanding of these concepts will stimulate a lucid understanding of the issues raised and discussed in this study. 54

2.6 Theoretical Framework

A theory, according to W. J. Goode and P.T. Hart, is the relationships between

facts or the ordering of them in some meaningful ways while facts means empirically

verifiable observation.85 Scientists and philosophers have also sought in their own ways to

give impression that theories about specific aspects of their subject of interest are

“unshakeable truths”.86 However, even where scholars agree that whatever is described as

a theory needs to be more than a mere collection of facts, it is still the case that not all

statements that go beyond facts are theories.87

A theory would have little or no value if all it does is to provide facts which

people believe to be true about particular past and current events. To have any value, a

theory must explain or suggest ways of explaining why a subject matter has certain

characteristics.88 In other words, a theory must have explanatory, predictive, and problem-

solving value (and) not just an intellectual exercise that simply seeks to provide new sets

of categories or paradigm(s).89

F. N. Kerlinger provides one of the most used conceptualisation of what a theory

is as thus:

A set of interrelated constructs (concepts), definitions, and propositions that represent a systematic view of phenomena by specifying relations among variables with the purpose of explaining and predicting the phenomenon90

In line with the above, P. S. Cohen observes that “the goal of any theory is to explain

something which has occurred with a view to dealing with problems which arose or may

arise as a result”.91 Explanations usually require the use of models; which in one sense

refers to the use of comparisons that make explanation possible by suggesting certain

similarities between unidentified or unobservable processes and others which are

known.92 At a second level, models refer to a set of assumptions which are used to

described a number of interrelated processes that can then be treated as though they

constitute a reality that stands on its own.93

55

Theories and models are developed because they are considered logical for

explanations that become necessary for the moment problems are discovered. Ultimately,

theories and models have direct linkages with the nature of the problems that they create,

or which, sometimes make their development a necessity.94 Based on this premise, the

study discusses high input pay off theory and Financial-Led Theory. The work adopts the

latter to pillar the research analysis.

2.6.1 The High Input Pay Off Theory

The theory which was formulated by T. W. Schutz (1964) assigns a strategic role

to new high yielding input varieties and educated rural labour.95 The theory argues that, in

order to improve the productive capacity of the rural areas, programmes of development

must include a package of high yielding and profitable new inputs on which farmers can

invest. The theory further states that, agricultural modernisation strategy must also

emphasise a price policy which lowers input prices and raises those of output in an effort

to obtain favourable input-output price ratio. The theory emphasises that agricultural

modernisation cannot proceed far unless there is investment in research to produce and

disseminate inputs embodying new technology and in the education of rural people on

whom rests the task of allocating the resources for development. Such investments are

associated with very high rates of return compared to investments in alternative projects.96

The high input-pay off theory has considerable relevance for agricultural

development in Third World countries in a number of ways. In the first place, it provides

a theoretical basis for a position price policy in the context of agricultural development.

Secondly, the theory provides a justification for government investment in agricultural

research and the training of agricultural scientists. Thirdly, the theory gives part of the

explanation for the observed failure of farm management and extension programmes to

increase productivity in agriculture. Finally, the theory also provides strong support for

current efforts to boost export and food crop production through subsidisation of the

purchase of pesticides, fungicides, fertilizer and higher yielding seed varieties.97 56

Despite the relevance of the theory, it has been criticised for assigning an

exaggerated role to market forces in the course of economic development. Despite their

importance, market forces are not enough especially in the context of developing

countries. Furthermore, it has been argued that the theory ignores the fact that agriculture

which rests on new technology must be served by new institutions which are different

from the old. For example, it is argued that wide spread adoption of new techniques

where land tenure is archaic imposes constraints on labour and capital utilisation. Finally,

the theory has been criticised for emphasising the role of technological change at the

expense of the welfare implications especially in situations where political stability is

sacrificed for economic gain.98

2.6.2 Financial-Led Growth Theory

The above theory is based on an observation first made almost a century ago by

Schumpeter that financial market significantly burst real economic growth and

development.99 Schumpeter argues that, finance has a positive impact on economic

growth as a result of its effects on productivity, growth and technological change. As

early as 1989, the World Bank also endorsed the view that financial deepening matters for

economic growth by improving the productivity of investment especially in the

agricultural sector.100

In their joint opinion on this matter, C.O. Obute and T.S. Kokoh note that

economic growth is hinged on the available capital. Giving a detail analysis of this issue,

they point to Robert Solow Neoclassical Growth Model which posits that growth depends

on capital accumulation – increasing the stock of capital goods to expand productive

capacity, and the need for sufficient saving to finance investment as well as a higher

saving postponing consumption to finance increased allocation of resources towards

investment.101 In this regard, the CBN represents the financial institution with its role of

financing agricultural development in Benue State and Nigeria on the broader

perspective. Agriculture is a private investment of rural dwellers; they engage in farming 57

activities for the purposes of earning their living. They face a lot of challenges leading to

low productivity and poor standard of living. For them (rural farmers) to be free from

these challenges they seek government assistance but even with it, these said challenges

still persist.

However, private individuals and Benue State Government’s efforts were in

place, even before the beginning of the CBN’s agricultural development initiatives. This

has started with the establishment of Benue State Ministry of Agriculture and Natural

Resources in 1976 followed by the establishment of Agricultural Development Company

(ADC) which was established in 1978 the very year that the CBN launched Agricultural

Credit Guarantee Scheme Fund (ACGSF). Since 1978, Benue indigenes embrace the

State and CBN’s agricultural development policies thereby leading to improvement in

agricultural production and yield in the State. All these are pointers to the fact that the

Benue Government started its agricultural development programmes and the CBN gave

impetus to it through disbursement of finance, training and supervision of farmers which

enhanced agricultural development in Benue State and in this way, the study adopts

financial-led growth theory for the analysis of the thesis’ argument.

2.7 Conclusion

The review of related literature has clearly revealed a lacuna in historical works

on the CBN and agricultural development in Benue State, Nigeria and Africa at large. The

chapter has shown that studies on CBN and agricultural development, written by scholars

from allied disciplines are preoccupied with analyses on the role of the CBN in financial

institutions and the role of the CBN in agricultural statistics, among others. Most of the

books and articles on these studies are characterised with theoretical permutations lacking

historical substance. It is, therefore, the gap accentuated by the dearth of historical

sources that called for this study. The chapter has also evaluated the key concepts and the

theoretical base of the study, while chapter three discusses Benue State and its

agricultural development intervention programmes. 58

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47. B.W. Yio, “A History of Industrial Development Initiatives in Benue State”. Ph.D Thesis, Department of History … 2014, Pp.113-123.

48. S.R. Peters, and S.C. Hudhings, Bank Management and Financial Services. New York: McGraw-Hill Companies, Inc. 2014, p.4.

49. http://www.gov. Accessed on 20.02.2014.

50. http://www.fdic.gov. bank /index. Html. Accessed on 20.02.2014.

51. S.Dignen (ed.) Longman Business English Dictionary. England: Longman,2000, p.32.

52. A. Sullivian, and S.A. Sheffrin, Economics Principles: Principles in Action. New Jersey: Pearson Prentice Hall, 2003, P. 256.

53. S.Dignen (ed.) Longman Business English… p.33.

54. The New Encyclopedia Britannica. vol. 3 11th Edition, London: Encyclopedia Britannica, 2005, Pp.26-27.

55. E. S. Ezekiel, The Element of Banking: Money, Financial Institutions and Markets. Ibadan: Africana Feb Publishers Ltd, 2004, p.69

56. F. Adekanye, The Elements of Banking in Nigeria: With Question and Answers.Third Edition, Ibadan:F & A Publishers Ltd,1986, p.142.

57. F. Adekanye, The Elements of Banking… p.143.

58. G. Chantrell, The Oxford Dictionary of World Histories. Oxford: Oxford University Press, 2002, P.50.

59. G. M. Ulrich, “The Evolution of Agriculture in Insects”, in Annual Review of Ecology, and Systematic, No.1, P.12.

60. G. Chantrell, The Oxford Dictionary of World… P.52.

61. O. L. Akinboyo, “Five Decades of Agricultural Policies in Nigeria: What Roles Has Statistics Played?”, in CBN Bullion, Vol.32, No.4, October – December, 2008, p.36.

62. O. L. Akinboyo, “Five Decades of Agricultural Policies… p.36.

62

63. W. Sachs, “Introduction,” in W. Sachs (Ed), The Development Dictionary: A Guide to Knowledge as Power. London: Zed Books, 1992, P.57

64. R. Chambers, Whose Reality Count? Putting the First Last. London: Intermediate Technology Publications, 1997, P.43.

65. R. Chambers, Whose Reality Count? Putting the ...P.43

66. A. Thomas, “Meanings and Views of Development”. In T. Allen & A. Thomas (Eds), Poverty and Development into the 21st Century. UK, Oxford University Press, 2000, P.23

67. A. Sen, Development as Freedom. Oxford, Oxford University Press, 2008, P.64.

68. M.P. Todaro, Economic Development in the Third World. Longman. 1977, P.50

69. G. Rist, The History of Development. London: Zed Books, 1997, P.93

70. G. Rist, The History of Development. .. P.95

71. G. Chantrell, The Oxford Dictionary of World… P.52.

72. G. Chantrell, The Oxford Dictionary of World ... P.52.

73. NAK/SNP/1711703 Vol. III Agricultural Policy in Northern Province. Cited in M. M. Adamu “The Role of the Native Authority in the Agrarian and Pastoral Economy of Katsina Emirate, 1903 – 1960”. Ph.D Thesis, Department of History, ABU, Zaria, 2002, p.111.

74. Z. K. A. Bonat, “Agricultural Development Policy Implementation and Relations of Exploitation in Zaria & Katsina Provinces of Northern Nigeria, 1926-1966”. Ph.D, Department of History, ABU, 2015, p.46.

75. P. Bairoch, “Agriculture and the Industrial Revolution 1700 – 1914”, in C. M. Cipola (ed.) The Fontana Economic History of Europe: The Industrial Revolution. Glasgow: Williams Collins & Co. Ltd. 1973, p.478.

76. P. Bairoch, “Agriculture and the Industrial Revolution … p.478.

77. http://blackface.com.ng/2016/07/11/bank-agriculture-efficacy-functions-nigeria/ Accessed on 02.05.2019.

78. http://blackface.com.ng/2016/07/11/bank-agriculture-efficacy-functions-nigeria/ Accessed on 02.05.2019.

79. S. E. Nongo & S. O. Ajegi, “Community Banking in Nigeria… Pp.87.

80. S. E. Nongo & S. O. Ajegi, “Community Banking in Nigeria… Pp.87.

81. Echo Microfinance Bank >FAOS’ https://googleweb- light.com/i?u=http%34%2F%2F%. Accessed on 02.05.2019. 63

82. http:www.jstor Accessed on 02.05.2019.

83. Central Bank of Nigeria, Commercial Agricultural Credit Scheme: Evaluation and Impact Assessment Report. 2018. Accessed on https://www.proshareng.com/news/AGRICULTURE/Commercial-Agricultural- Credit-Scheme--Evaluation-and-Impact-Assessment-Report/42758 02.05.2019

84. S. E. Akiri, “An Assessment of Poverty Alleviation Programmes in Nigeria”, in Journal of Economic and Management Studies. Vol.1, No.2, 2005-2006, P.65.

85. J.W. Goode & P.T. Hart, Methods in Social Research. New York: McGraw Hill, 1952, P.11.

86. S. A. Fateti, “Theories of Social Conflict”, in S. A. Best (ed.) Introduction to Peace and Conflict Studies in West Africa: A Reader. Abuja: Spectrum Books Ltd, 2009, p.37.

87. S. A. Fateti, “Theories of Social… p.37

88. S. A. Fateti, “Theories of Social… p.37

89. S. A. Fateti, “Theories of Social… p.37

90. F. N. Kerlinger, Fundamentals of Behavioural Research. New York: Holt, Rinehart and Winston, 1973, p.8.

91. P. S. Cohen, Modern Social Theory. London: Heinemann, 1968, p.2.

92. S. A. Fateti, “Theories of Social… Pp.37-38

93. S. A. Fateti, “Theories of Social… Pp.37-38

94. A. C. Bunce, The Economics of Soil: Soil Conservation. Ames: The Lowa State College Press, 1942, p.85.

95. T. N. Schultz, Transforming Traditional Agriculture. New Haven: Yale University Press, 1964, Pp.21.

96. W. N. Schultz, Transforming Traditional Agriculture. New Haven: Yale University Press, 1964, Pp.21.

97. S. M. Essang, “Growth Models and Rural Development” in S. O. Olayide et’al, (eds.) Elements of Rural Economics. Ibadan: Ibadan University Press, Pp. 308.

98. F. C. Okafor & A. G. Onokerhoraye, Rural Systems and..., Pp. 182.

99. J.S. Schumpeter, The Theory of Economic Development. Cambridge: M.A. Havard University Press, 1912, P.72.

100. World Bank, World Bank Development report. Washington DC, 1989, P.11.

64

101. C.O. Obute & T.S. Kokoh, “The Impact of Financial Development on the Economic Growth in Nigeria”, African Journal of Management, Social Sciences and Humanities. Makurdi: Selfers Academic Press Ltd, 2014, p. 2.

65

CHAPTER THREE

AGRICULTURAL DEVELOPMENT PROGRAMMES IN BENUE AREAS, 1967-2015

3.1 Introduction

This chapter focuses on the key areas of agricultural development programmes

in the defunct Benue-Plateau State; it pays attention to the establishment of Ministry

of Agriculture, Food Production Programme, Tractor Hiring Services, Forest Reserves

and Livestock Farms. It also takes an overview of the history and geography of the

study area. The chapter brings into focus the people of Benue State with the use of

data from the National Population Census. It also discusses the agricultural

development programmes of the Benue State Government. These include the

establishment of Benue State Ministry of Agriculture and Natural Resources,

Agricultural Development Company (ADC), Benue Agricultural and Rural

Development Authority (BNARDA), and Benue Tractor Hiring Agency (BENTHA).

The chapter emphasises that the aforementioned programmes were bedevilled with

inherent challenges leading to their marginal contribution to agricultural development

in Benue State.

3.2 Agricultural Development Programmes Under Benue-Plateau, 1967-1976

Benue-Plateasu State government realised the importance of agriculture and

initiated and implemented many agricultural programmes for the purpose of

agricultural development. These programmes are discussed in greater detail in the

succeeding discourse.

3.2.1 Benue-Plateau State Ministry of Agriculture

Agricultural development was one area to which the State government gave serious attention. This was because the State was predominantly agrarian. There were vast lands in many parts of the state devoted to growing specific types of farm produce. For example, the

66

Tivland was known for producing yams and beniseed in large quantities. The Lowland

(Shendam) Division was also known for rice and yam production.1

Other parts, such as Jos, Pankshin, Akwanga, Lafia, Keffi were known for the production of cassava, maize, acha, potatoes, beniseed, beans, guinea corn, groundnuts and other staple food crops. Benue-Plateau state was, therefore, known as an “Agricultural State”.

The State government, under the leadership of Gomwalk embarked on an agricultural policy that ensured mass production of these food crops.2

At the onset of creating ministries in 1968, agriculture was taken care of as a division within the Ministry of Natural Resources; Mr. Isaac Shaahu was the first commissioner to head this Ministry. In 1975, the Ministry was split into two, namely, Ministry of Agriculture and Ministry of Animal and Forestry Resources.3

3.2.2 Food Production Programme

Agriculture was the mainstay of the economy of Benue-Plateau state and Government continued to pursue policies which helped to boost this important occupation. Emphasis was placed on the provision of adequate food for the rapidly growing population and raw materials for the expanding industries in the state.4

Government embarked on large plantation schemes based on irrigation which provided more opportunities for employment and production all the year round for the people in the rural areas. Staff of the Ministry were trained in training centres as qualified extension agents to get to the rural areas. The seed multiplication programme was also embarked upon.

The aim of this was to develop soil conservation and also to increase productivity. A school of agriculture was established in the State in 1974 offeringCertificate Courses in Agriculture,

Animal Husbandry, and allied Courses to help in updating the extension agents and fresh secondary school leavers on farming operation were also introduced. The government also encouraged the establishment of Young Farmers’ Clubs all over the state to keep the youth more on the farm.5 67

Some irrigation schemes were carried out in the state. In 1972, pre-feasibility studies of Mada River Basin and Schemankar River Project were carried out to help the farmers all the year round in food production. Also, in 1974, farmers in Wase, Ta-Hoss, Katsina-Ala,

Kafin Wambai and Ganawuri benefited from the irrigation scheme carried out there.6

For effective supervision and management of farm activities in the state, the Ministry divided the State into three Agricultural Zones which brought the Ministry nearer to farmers.

Each zone was under the inspection of a Senior Agricultural Officer. They were grouped as follows:

Northern Zone - Jos, Pankshin, Langtang and Shendam Division

Central Zone - Akwanga, Lafia and Nasarawa Division

Southern Zone - Gboko, Makurdi, Katsina-Ala and Otukpo Division.7

All the divisions had agricultural offices under the control of Agricultural Superintendents.

Farmers in the State benefited from the Ministry in a variety of ways. Specialists in various fields of agriculture were posted to the rural areas who worked together with the farmers in order to ensure regular and bountiful harvest yearly in the state. In 1974, the Benue-Plateau

State Government embarked on modern commercial farming at Bokkos. The aim of the project was to apply to Nigerian agriculture, mechanized and modern commercial principles.

Ten thousand acres were planned to be cultivated.8

3.2.3 Tractor Hiring Services

Governor Gomwalk set up a committee in 1970 which made a detailed survey of the viability and overall economics of tractor hiring units. This led to the establishment of a scheme for fertilizer distribution through the Tractor Hiring Unit and the supply of improved tree crop seedlings was intensified and expanded.9

In 1971, Government brought 120 tractors complete with farming implements and equipment. 60% of these were distributed throughout the state to increase the number of the few tractors already in use. The remaining 40% were sold to farmers who wanted to buy the 68 tractors, at highly subsidized rates of £2,100. Each set included a tractor tipping and trailer, plough, ridge and harrow. Farmers who bought tractors from the Government were able to save one thousand pounds (£,1000) which they profitably used on other aspects of farming projects or other businesses. In addition, subsidy of 25% of the initial cost of pumping sets was given to a farmer or group of farmers who used them for irrigation. Also, twenty wheeled

Japanese hand-tractors were used under local soil conditions and many of such were distributed to farmers.10

Each year, Government continued to purchase more tractors and implements for sale to farmers at subsidized rates to simplify the task of land preparation and weeding. The

Tractor Hiring Unit was equipped with mobile workshops which helped to carry out repairs and services whenever the need arose.11

3.2.4 Forest Reserves

Governor Gomwalk’s government regarded Forestry as a long-term investment.

However, with the establishment of fast growing species, the rotation age for timber was being considerably reduced. The pace of forest development in the state and the growing awareness of the importance of forest conservation and management as well as recreational forestry, and the general protection of the environment were well appreciated. Government planned and executed a comprehensive programme for forest development geared towards the conservation of the existing forest. A programme for forest afforestation was vigorously pursued on virtually every treeless area on the Jos Plateau. Some 500 acres of eucalyptus species were established at Jere and Mangu Forest Reserves. The Forest Development

Programme was embarked upon to ensure that extensive plantations of eucalyptus were established to minimize fuel shortage of the Plateau.12

Forest Offices were opened in all the Divisional Headquarters of the state. These offices were manned by Assistant Conservators of Forests. Tree planting was stepped up, as

500 seedlings were given out in 1970. Ornamental species were sold cheaply, to cover only 69 the cost of production. About 670 acres of eucalyptus and teak planted in Jere, Mangu,

Shagev-Tiev, Ijami and Akwanga Forest Reserves.13

Plantations of exotic trees were given serious attention. Teak plants were planted in

Ihugh Forest Reserve in 1972. Similarly, over 250 acres of land in the Benue Valley was planted with treak. These were to be used for the production of timber and telegraph poles.

The conservation and development of the Jos wild life was undertaken and the boundaries of four new areas, Pandam Wild-Life Park in Shendam, Wase Game Sanctuary, Wase Rock

Game Reserve and Pai River Game Reserve in Langtang were surveyed and demarcated. As much as 11,120 square kilometers was demarcated in Ibi as a game reserve and transformed into important tourist centre because of certain rare species of animals peculiar to the area. By

1971, the main part of the survey of the wildlife of the state was completed.14

The Benue-Plateau State Wildlife Conservation and Development Programme was one of the most ambitious in the Federation. The state used to be rich in a variety of wildlife: elephant, hippopotamus, giraffe, buffaloes, gazelle, roan antelopes, waterbucks and other animal species some of which are gradually becoming extinct today.15

3.2.5 Livestock Farms

The enormous potential of the State was fully tapped, particularly in terms of annual production and intensification of curative measures. The Batura Animal Husbandry

Extension Centre was completed in 1974 with special emphasis on Dairy Industry. The temperate exotic breeds of Friesian Cattle were settled at Butura for cross breeding which surpassed the existing local breeds. These hybrid were distributed to selected cattle breeders to determine and expand their inborn potential of milk production.16

The Makurdi Poultry Unit was completed in 1974. About 300,000 day-old chicks were hatched yearly in the Unit. The hatcheries in Jos and Makurdi were satisfying the high demand for day-old chicks. This was because most of the large major livestock projects were already in operation and were in need of large quantities of day-old chicks. Piggery 70 development also received adequate attention and piglets were sold to interested persons at subsidized rates.17

Each year, the Veterinary Division’s Recurrent Estimates had up to 80% for Animal

Husbandry and 20% for Animal Health Development. This clearly showed that Government placed increased emphasis on animal production, hoping that with improve control measures, animal diseases would be minimized and eliminated. Control Post at Umaisha and a Cooling

Centre for milk at Kumbul were established. The Butura Gazing Centre produced improved grass and legume for animal feeds. Governor Gomwalk also established Parks and Gardens and recreational amenities. Plant nurseries were established in all Divisional Headquarters in the State.18

In general, agriculture received the needed boost and attention during the tenure of

Governor Gomwalk. The state was well known for food production, as high yielding varieties of seeds were supplied to formers who were engaged to apply modern technology under high- level management supervision which enabled them to have substantial increase in their yields. For example, in early 1975, Governor Gomwalk released the sum of N11 million for five group-farming projects established in the state as a start. Irrigation schemes were expanded which enabled farmers to increase their production by growing at least two crops each year. The Bokkos farm project was expanded in 1975 to 10,000 acres with emphasis on the production of food crops such as maize, guinea corn, rice and potatoes. The Produce

Inspection Section of the Agricultural Services Division carried out its main duties of inspection and grading of scheduled crops on behalf of the Benue-Plateau Marketing Board.19

Governor Gomwalk continued to call on farmers in the state not to relent in their efforts to produce food crops in greater quantities. In his 1975 budget speech he declared:

It is hoped that with the present high producer prices offered, farmers in the State will further increase their production of the various crops. I wish to repeat the call, which I have always made to our farmers in the past years, to make greater efforts to produce more food as well as cash crops. The State Marketing Board, which has been set up to buy scheduled crops from you, 71

recently carried a major re-organization of its establishment to increase its operational efficiency. The marketing board was able to purchase 14,000 tons of produce during the year just ended as compared with 10,000 tons in the previous year.20 The above citation implies that the Benue-Plateau State government was up and doing in bringing method for the development of the agricultural sector.

3.3 History and Geography of Benue State

Prior to the eighteenth century, Benue Basin which is also known as Benue

Valley was a region of considerable human diversity and natural climatic and

ecological variations. These distinctions were matched by an array of different social,

political and economic formations. Each ethnic, linguistic, cultural, demographic,

political, economic, and environmental distinction added to the complexity of the

region.21 However, there was regional cooperation and competition among individual

inhabitants, in respect to their day to day activities in the regional affairs.22

Benue State as it exists today is a surviving legacy of several administrative

changes beginning from the protectorate of Northern Nigeria at the beginning of the

twentieth century. The territory was initially known as “Munshi” Province until 1918

when the name of its dominant geographical feature ‘River Benue’ was adopted.23

The Benue Province now called Benue State is the colonial name for the southern half

of the Province. This Province covered Southern Plateau (now Nasarawa State) and

Benue from which the defunct Benue Plateau was created in 1967 and later the regime

of the Late General Murtala Mohammed created Benue State on 3 February 1976.24 In

1976, Benue Plateau was further divided into two states, with Plateau in the North and

Benue in the South of the River Benue. This political structure remained until 1991

when four local government areas in Igalaland namely: Ankpa, Dekina, Bassa and

Idah were carved out of Benue State to constitute part of the present Kogi State.25

The study area (Benue State) lies within the lower Benue river basin within

longitude 7o47’ and 10o0’ East, and latitude 6o25’ and 8o8’ North of the Equator.26

72

With a total land area of 32,518 sq km, the State shares boundry with Nasarawa State to the North, Taraba State to the North-East, Cross River to the South, Enugu to the

South-West and Kogi of Nigeria to the West.

73

Map 1: Map of Nigeria showing Benue State

Source: Ministry of Land and Survey, Benue State, 2014.

74

Figure Map 2:3.2 MapMap Benue of Benue of State State

MAKURDI

Source: Ministry of Land and Survey, Benue State, 2014.

It also shares an international boundary with the Republic of Cameroon in the

Kwande Local Government Area axis.27 According to D. V. Uza, the name Benue

State is synonymous with agriculture and food production in Nigeria.28 The state is

endowed with human friendly physiographic and climatological attributes. The

favourable agro-ecological conditions and the central location of the state support

massive production of arable and plantation crops, livestock and fisheries. The

contributions of Benue to the food needs of Nigeria bestow on it the status of the

“Food Basket of Nigeria”. In recent times, however, the Food Basket status has

75 become questionable as several neighbouring states are catching up with Benue in massive food production.29 For example; the dominance of Benue State at National

Agricultural Shows has been broken. In spite of the above analysis, it should be noted that Benue State still plays a vital role in agricultural development in the country largely because of good climate and soil and the contributions of many financial institutions especially the CBN to the agricultural activities in the State.

There are about seven different types of soil covering the Benue topography;

30 these include lithosols, aerisols, luvisols, flusols, nifisols, cambisols and regosols.

However, the most extensively distributed soil types are the luvisols which are most noticeable in the western and southern parts of the state. This soil type is actually found in all local government areas of the state except Kwande, Vandeikya and Ado

Local Government Areas. Aerisols dominate Kwande and Vandeikya, while fluvisols dominate Ado Local Government Area. Generally, the quality of Benue soils in the context of their usefulness to agriculture have very much been affected by the micro changes in the climate, geomorphology and human activities within the area.31 The

River Benue is the major river in the state. The major tributary of River Benue is

River Katsina-Ala. There are also smaller rivers and streams, some of which flow into the Benue Katsina-Ala system, Cross River and the River Niger. These rivers and streams constitute the drainage system of the state.

The climate of Benue State, like the rest of Nigeria, is influenced by two air masses, namely, the Tropical Continental (CT) air mass located in the Sahara Desert and the Tropical Maritime (TM) mass located in the Atlantic Ocean. These air masses give rise to the North East Trade Winds (N.E. Trades) and South West Trade Winds

(S. W. Trades) respectively. These winds converge at the Inter Tropical Convergence

Zone (ITCZ), which pulsates north south of the state and indeed, the whole of Nigeria with the apparent movement of the overhead sun.32 76

Associated with these are the two seasons experienced in the state, that is Wet and Dry seasons. The wet season lasts for about seven months. It starts from April and ends in November. The total annual rainfall ranges from 1500mm – 2000mm.33 The

Mountains strip along the Cameroonian border, which receives a total annual rainfall of about 2000mm, is the wettest part of the state.

The dry season, on the other hand, starts from December to March. During this time, Benue State is under the influence of the North East Trade winds which are dry and dusty, thereby causing harmattan. As it is the norm with Tropical locations,

Benue State generally has high temperatures. Makurdi, the state capital, records a maximum and minimum of 35oC and 21oC respectively.34 Relative humidity is very high particularly with the wet season because of the thick cloud cover. Consequent upon this, perspiration is very high. The state lies in the Southern Guinea Savannah characterised by tall grasses and scattered trees. Because of the seasonal nature of the climate, the vegetation is deciduous, shading leaves in the dry season to conserve water. However, the true vegetation in its natural form only exists in forest reserves.

The rest is sub-climax vegetation created upon incessant clearing for farming activities.35

Soil, temperature, and water, among others, influence agricultural activities in the state. Indeed, Benue State occupies an enviable position among the states of the federation in the area of agriculture. Contributing on this matter, P. Ogiji shares his view that:

Benue State has recorded impressive advances in food and agricultural production since its creation on February 3, 1976. The State is however not self-sufficient in food grains. As Nigeria’s acclaimed “Food Basket” because of its rich agricultural produce, which includes, yams, rice, cassava, beans, sorghum, sweet potatoes, millet, coco-yam, and soyabeans, the state has vast and fertile landmass. The state also boasts of one of the longest stretches of river systems in Nigeria with great potentials for a viable fishing industry and dry season farming via irrigation.36 77

The above indentation shows that, in spite of the contributions of agricultural sector to

the development of Benue State, agricultural potentials in the area are not fully

tapped. For example, despite the availability of rivers across the country, fishing as an

occupation is largely left to the Jukun and Etulo ethnic groups. Dry season farming is

almost left to the northerners alone. In our study area, dry season farming is practised

on a low key despite the benefits accompanying it.

3.4 People of Benue State

Like many states in Central Nigeria, Benue State is home to many ethnic

groups. This has a historical explanation as studies on the area have revealed that out

of over 250 ethnic groups in Nigeria; over 200 of them are from Central Nigeria of

which Benue State is an integral part.37 It has been suggested that the great ethnic

fragmentation of Central Nigeria made them particularly open to depopulating raids

from large more centralised groups both to the south and the north. Many of these

groups that are found in Central Nigeria today and Benue State in particular, migrated

into the region at different historical epochs especially from the 15th and the 18th

centuries.38

In discussing languages and the peoples of Benue State, it is evident stating

that Benue State is made up of three dominant groups: Tiv, Idoma, and Igede. Tiv

occupy fourteen of the twenty three local government areas. The remaining nine local

governments are shared by the Idoma who have seven and the Igede, two.39 Within

the traditional boundaries of Tiv and Idoma lands are the various minority ethnic

groups, namely: Etulo, Nyifon, Jukun, Abakwa, Bassa, Arago, Ufia, Akweya, with

varying population figures. Apart from these indigenous ethnic groups, there are also

the Diasporan communities in Benue State including Igbo, Yoruba, Igala, Edo, and

many others who have settled in the Benue region over a long period of time usually

for economic and educational reasons.40 78

However, none of the dominant indigenous languages of Tiv and Idoma has the privileged status of a regional lingua franca.41 However, it is worthwhile noting that these ethnic groups are found in the twenty three Local Government Areas of

Agatu, Ado, Apa, Otukpo, Ohimini, Okpokwu, Tarka, Katsina-Ala, Logo, Gboko,

Buruku, Makurdi, Gwer, Gwer-West, Konshisha, Kwande, Guma, Ukum, Ushongo,

Vandeikya, Obi, Oju, and Ogbadibo. The Benue population by 1996 population census was put at 498,554 house holds and by 2006, it was 4,253,641 (2,144,043 male and 109,598 females).42

Table 3.1 Local Government Areas (LGEAs) and Population of Benue State in 2006 S/No Name of LGEA Population Census 2006- Population Projection 03-21 2011-03-21 1. Ado 184,389 214,230 2. Agatu 115,597 134,310 3. Apa 96,780 112,440 4. Buruku 206,215 239,590 5. Gboko 361,325 419,800 6. Guma 194,164 225,590 7. Gwer East 168,660 195,960 8. Gwer West 122,313 142,110 9. Katsina-Ala 225,471 261,960 10. Konshisha 226,492 263,150 11. Kwande 248,642 288,880 12. Logo 169,570 197,010 13. Makurdi 300,377 348,990 14. Obi 98,707 114,680 15. Ogbadibo 130,988 152,190 16. Ohimini 70,688 82,130 17. Oju 168,491 195,760 18. Okpokwu 175,596 204,010 19. Otukpo 266,411 309,530 20. Tarka 79,280 92,230 21. Ukum 216,983 252,100 22. Ushongo 191,935 223,000 23. Vandeikya 234,567 272,530 Total 4,253,641 4,942,100

Source: National Population Commission, 2006. Also available at https://www.citypopulation.de/php/nigeria-admin.php?adm1id=N. Accessed on 20.04.2016

79

The preceding table 3.1 reveals that Benue State is made up of 23 LGAs.

Gboko Local Government has the highest population of 361,325 while Ohimini has the least population of 70,688 people. However, whether small or large in population, all of these 23 local government areas contributed for the well being of the state including agricultural activities. It should be noted that Benue State has contributed to the population of both livestock and fish production in Nigeria as can be seen in the table below:

Table 3.2 Types and Population of Selected Livestock in Benue State Compared to the National Livestock Population (NLP) 000 Type National Benue % NLP Muturu 354 20 7 Zebu (Fulani) 27,446 272 1 All Cattle 27,800 292 1 Goats 67,734 4,866 7 Sheep 42,460 936 4 Pigs 6,734 1,406 21 Chickens 142,328 16,736 12 Ducks 25,600 360 10 Pigeons 30,400 782 3

Source: National Bureau of Statistics (NBS), 2016

Table 3.2 clearly confirms that Benue State is reputed to have the highest number of pigs in Nigeria. The State environment is also ideal for poultry production.

The table further shows that Benue State has a very scanty number of Muturu. It also displays that the State environment is also suitable for rearing of goat, sheep, chickens, ducks, and pigeons.

80

Table 3.3 Fish Production by Inland States (000 tonnes)

State 2011 2012 2013 2014 2015 Anambra/Enugu 4,612 4,481 2,960 2,893 2,728 Bauchi 273 272 244 254 259 Benue 846 1,807 4,088 2,147 2,130 Borno/Yobe 87,266 64,657 144,852 186,413 187,712 Taraba/Adamawa 23,568 23,089 21,897 21,494 21,105 Imo/Abia 1,802 1,657 2,357 2,039 2,197 Kaduna 1,456 4,101 2,096 2,373 2,276 Kano/Jigawa 1,435 1,896 2,050 1,065 1,837 Katsina 1,047 1,020 1,406 1,091 1,295 Kwara/Kogi 252 28 497 613 420 Niger 2,019 2,024 2,554 2,193 1,609 Oyo/Osun 456 479 485 615 215 Plateau 483 421 839 1,207 867 Sokoto/Kebbi 46,161 104,144 61,844 103,815 128,015 FCT - 18 83 24 122 Total 184,876 210,484 229,612 270,926 285,327 Source: National Bureau of Statistics (NBS), 2016

Table 3.3 above reveals that fish production in Benue State hit the figure of

four million metric tonnes in 2013. Though the figures have continued to decrease,

the state is still listed among those with a production capacity of a million metric

tonnes and above. It is worth noting that fishing is carried out in the state mostly by

those who inhabited the riverrine areas and it provides employment and livelihood for

families involved in fishing, processing, preservation and marketing.

3.5 Benue State Agricultural Development Programmes, 1976-1988

When Benue state was created in 1976, there was the need for the State

administration to embark on agricultural programmes that would enhance agricultural

production.43 This was based on the realization that the state possessed potentials to

produce almost all food crops and as part of the measures to tap these great resources,

the government drew up certain strategies part of which was the mobilization of

farmers to form cooperative unions in order to benefit from bank credit facilities and

have easier access to agricultural inputs. The state government also ensured ready

availability of agricultural machinery, chemicals and expert advice.44 The idea behind

81 the formation of cooperative unions is a sound one and they have always constituted themselves into such unions to enable them access credit facilities but the exercise has never been sustained by the granting organizations. However, even though cooperative unions have been formed for easy accessibility of agricultural inputs at government subsidized rates, farmers have always had difficulty in accessing these inputs especially fertilizer, since it has always been diverted and sold to traders who in turn sell it in the open and exorbitant rates which are usually unaffordable by the average farmer and this has been the bane of the small farm holders. An informant corroborated the above assertion thus, “we have always formed agricultural cooperative unions for the purpose of getting improved inputs from government but these have always eluded us especially fertilizer.”45

Another programme is the actual involvement of government in agricultural production through its agencies. The government produces improved seeds for supply to the farmers on the one hand and modern techniques on the other. The direct involvement of government in the agricultural production as a deliberate policy measure toward increased food production but has not yielded the desired effects.46

This is predicated on the fact that most strategies geared toward increased food production are impeded by the bureaucratic red tapism in the civil service structure. A typical example is the handling of agricultural inputs like fertilizers, and the production of improved seedlings for the farmers which have to follow the official route necessary for the approval and release of funds from the designated government officials for their purchase and distribution before these get to the real farmers and in most cases the inputs arrive when it is too late for them to be applied on the crops. For an area with small land holdings especially in the Kunav and Gaav areas due to land shortage, the farmers could hardly secure optimal crop yields on their farms. A farmer

82 commented on the direct involvement thus, “we rely on the government to help us boost agricultural production but the official processes have always impeded our efforts. Above all, measures adopted for input distribution are foiled by government officials and we end up buying in the open market.”47

The strategy of impacting new agricultural techniques by government officials through extension services has also led to a lot of draw backs. This is because several scheduled appointments by extension officers with farmers have either been cancelled on account that funds for the exercise have not been released or they have been used for another exercise and better still the officer concerned decided to put it off.48 When the farmers with small land holding cannot access the extension services of the relevant agricultural agencies, then it cannot benefit from modern techniques which are supposed to boost his/her crop production. Benue state is rural based and to ensure that what is produced has easy accessibility to the markets, there was the need to open up the rural areas for easy evacuation of agricultural products. Furthermore, in order to ensure attractive commodity prices, the government provided the farmers some incentives to produce more. The policy measure sounded very good more so that the bulk of the farming population is found in the rural areas which are quite inaccessible due to the lack of roads but the implementation failed completely.49

However, farmers have recorded very high post harvest losses especially in perishable crops such as tomatoes, pepper, and tree crops like citrus, mangoes, pears, and a host of others. Thus, instances where buyers manage to get to some remote places, they give considerably low prices bearing in mind that the farmers are at the receiving end and if they refuse such prices their products would go bad. When farmers record post harvest losses on their products there is no respite from any government agency. And if they have to go on with production at all it is to the

83

commercial banks or other private lending institutions that they turn to.50 The

agricultural development policies initiated by Benue State Government are discussed

one after the other in the succeeding discourse here under.

3.5.1 Ministry of Agriculture and Natural Resources, Benue State

The Ministry of Agriculture and Natural Resources was established in 1976

when Benue state was created.51 The core mandate of the ministry is the creation of an

enabling environment for increased agricultural production in the state. Consequently,

it was charged with the responsibility of providing extension services to farmers:

providing tractor hiring services in order to enhance large scale crop production.

Providing improved seeds and livestock breeds and assisting farmers in pest control.

It also manages the state government’s credit scheme for small and medium scale

farmers. The Ministry of Agriculture also made efforts to introduce agricultural

mechanization. To this end, an Agricultural Engineering Division was created within

the Ministry to impact knowledge about the use of agricultural machines like tractors,

harvesters, threshers as well as irrigation techniques. In the area of improved seeds,

seedlings, and livestock breeds, the Ministry under review produces or purchases

these for sale to farmers at subsidized rates.52 The intention of policy makers to

establish the Ministry of Agriculture as a strategy toward increased food production is

a commendable move by government but in reality, the Ministry is part of the civil

service and its bureaucracy has been the draw back in the effective implementation of

the policy of increased food production. Direct involvement of government agencies

like the Ministries of agriculture has not made any head way in the agricultural

revolution due to the attitude of the people to public infrastructure.53 The government

investment in the Ministry has not yielded commensurate gains due to the care-free

attitude of the agricultural experts in the maintenance of the agricultural machinery

84

and this has worked against increased agricultural production. Agricultural machinery

such as Tractors, harvesters etc cannot be afforded by the small holder farmers and in

cases where they can, the cost of lease or hire, the method of leasing the machinery is

wrought with acts of favouritism. Added to the above is the fact that the machinery

are not well maintained and that is why the premises of the Ministries of Agriculture

and their Divisional head offices are littered with broken down agricultural machinery

which would otherwise be in working condition were they form corporate

organizations. 54

Looking at the objectives of the Ministry of Agriculture, it will be realized

that it has failed in its primary mandate of creating a conducive environment for

agricultural production in Benue State. This is because it has not been able to bring

about reforms in the sector and agricultural production is still conducted in the same

rudimentary forms. An informant lamented “those of us in the rural areas are not

provided with the agricultural inputs then we go without them.”55 The extension

services of the ministry could have helped develop the sector especially in the

provision of improved seedlings of many of the crops cultivated by the people. This

could have led to increased yields even in areas of land shortage such as southern

Tivland.

3.5.2 Benue State Agricultural Development Corporation (ADC)

In May 1977, the Agricultural Development Corporation was set up by the

Benue State Government. The headquarters of the Corporation is situated at Apir in

Gwer East Local Government area of Benue State, about 11 kilometres south of

Makurdi on the Makurdi-Otukpo Road. The Benue Agricultural Development

Corporation was established primarily to hasten the pace of agricultural development

in the state by getting directly involved in the production of livestock, animal feeds as 85 well as embarking on large scale mechanized farming. In order to meet its demands as well as those of livestock farmers, the Corporation set up two feed mills which produce different types of livestock feeds.56 Some notable achievements of the

Corporation include agreements with foreign companies which led to their partnership with the state government in a number of agricultural ventures. These include the

Ikyogen Cattle Ranch, Ben-Wily Fish farm at Ber Agbum, the Hawaiian Agronomics and the Soyamel project which was a joint venture with Danish Turkey Dairies limited for the extraction of milk from soyabeans.57 The establishment of the

Agricultural Development Corporation (ADC) has been a very laudable policy measure by the Benue State Government toward increased agricultural production in the state. However, the Corporation encountered some critical challenges. The first challenge has to do with the management of the corporation. Instead of running it strictly based on the technical competence of the staff concerned, it was run along bureaucratic lines with an administrative structure which was rather unwieldy for the organization and therefore a drain on its resources which finally led to its collapse.

The second issue had to do with the maintenance of the equipment of the

Corporation. There has been the lack of maintenance of the equipment of the corporation especially those that are involved in the production of poultry and other machinery such as tractors and harvesters for its farms.

The Corporation was also plagued by corruption in the running of its affairs by both its management and the interference by its Board. The above factors have therefore hampered the smooth operations of the Agriculture Development

Corporation’s drive toward increased food production in the state.58

If the Agricultural Development Corporation (ADC) had been managed properly to achieve the mandate for which it was established, the impact of its 86

establishment could have gainfully engaged the farming population of southern

Tivland. The Ikyogen Cattle Ranch located in Kwande and the Ben-Willy fish farms

at Ber-Agbum in Ushongo Local Government are all in Benue State. The two

establishments could have successfully trained and gainfully engaged the erstwhile

idle youths of Kwande Local Government Area in modern techniques of livestock

keeping. The Ben-Willy Fish Farms would also have trained many of the youth in

modern fish farming. The overall impact of the Agricultural Development

Corporation would have been in two-fold. It could have led to increased agricultural

production in Benue State and at the same time gainfully engaged many of the idle

hands in useful agricultural ventures thereby taking them away from engaging in land

ownership conflicts. Bem Kashi retorted that, “the establishment of the Ikyogen Cattle

Ranch was a noble one and could have helped our people especially those who love to

keep livestock but for its fold-up.”59 When the ADC failed to meet its desire

objective, the Benue State Government established the Benue State Agricultural and

Rural Development Authority to promote agricultural development in the State.

3.5.3 Benue Agricultural and Rural Development Authority (BNARDA)

The Benue Agricultural and Rural Development Authority (BNARDA) was

established by Benue State Edict No.7 of 11th July, 1985 as an extension of the

enclave of Ayangba Agricultural Development Projects. It came into formal operation

in January 1986. It was established to promote and sustain crop and food production

and raise the incomes and standard of living of farmers in Benue State.60 This was to

be achieved by providing a package of farm support services which include improved

and unified extension service, on-farm adaptive research, farm input distribution, rural

water supply, small-scale irrigation and infrastructural development.61

87

The idea behind the establishment of the Benue Sate Agricultural and Rural

Development Authority was a good one considering the fact that the Authority had as

its priority the provision of extension services and the provision of improved

seedlings to farmers. As a follow-up, the programme was able to effectively mobilize

the rural farmers in the state through its extension services which were beneficial to

the farmers and covered all areas where crops were grown.

However, the Authority faced the challenges of poor maintenance culture

which has led to the breakdown of the Authority’s agricultural machinery, and the

lack of sustained funding of the activities of the organization and the non adherence to

the core objectives of the authority by the supervising government agencies among

other factors have been responsible for the poor state of the Benue Agricultural and

Rural Development authority (BNARDA). The Benue Agricultural and Rural

Development Authority started well especially in extension services but these efforts

are no longer noticed in our communities.62 If the Benue State Rural Development

Authority had lived up to its billing especially in the provision of extension services to

farmers and other essential services such as small scale irrigation services, it could

have developed agricultural production and lead to increased crop yields in Benue

State. To enhance the pace of agricultural development in the State, the Benue State

Government has established Benue Tractor Hiring Agency (BENTHA) so that

farmers would hire the services of tractors at subsidised rates.

3.5.4 Benue Tractor Hiring Agency (BENTHA)

The Benue Tractor Hiring Authority was established in 1988 to reduce the

labour intensive traditional method of cultivation and popularize the culture of

mechanization of agricultural production and its services which include clearing,

harrowing, ploughing of farmlands. This would not only save time but also increase 88 acreage and ensure greater yield. The agency started with 150 tractors at the cost of

N30million.63 The Benue Tractor Hiring Authority (BENTHA) as an agency of government for the promotion of agriculture in the state has rather been a conduit pipe for the draining of its scarce financial resources. This is against the backdrop that since the establishment of the agency, successive governments have made budgetary provisions and gone ahead to purchase agricultural tractors in units of hundreds meant for the Benue farmers. These tractors end up being shared among highly placed government officials while the rest are leased to agricultural merchants who take them to neighbouring states of Nasarawa and Taraba where they are leased out at exorbitant rates. At the end of such exercise, the merchants come back to pay paltry sums into government coffers which at the end of the day cannot procure one or two units of the tractors.

There has also been the issue of lack of effective maintenance of these tractors which resulted in the abandonment of many units of unserviceable tractors on farm sites within and even outside the state and within the premises of the authority headquarters in Makurdi, the state capital. Most of Benue people do not have access to the use of tractors. It is only the rich farmers that are able to hire the services of tractor operators either from government or from the private sector.64 In spite of all these challenges, these programmes enhanced the production of diverse crops in

Benue State, the State in turn supplies food to the Benue populace and different parts of the country. Food crops produced in the State are shown in the succeeding table 3.4

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Table 3:4 Food Crops Produced in Benue State

S/NO Crop Area of Production 1. Yam All over Benue State with higher concentration in Ukum, Katsina-Ala, Gboko, Buruku, Vandeikya, Gwer, Guma, Okpukwu, Ohimini, Agatu, and Apa. 2. Cassava All over Benue State with higher concentration in Katsina-Ala, Gboko, Gwer, Buruku, Okpokwu, Ohimini, Apa, Agatu and Oju. 3. Cereals (mainly rice, maize, sorghum All over Benue State with concentration in and millet). Vandeikya, Gboko Buruku, Katsina-Ala, Makurdi, Gwer, and Kwande 4 Soya Beans All ovr Benue State with concentration in Gboko, Buruku, Vandeikya, Katsina-Ala, Makurdi, Gwer, Kwande and Okpokwu 5. Groundnut All over Benue State 6. Citrus All over Benue State with concentration in Gboko, Vandeikya, Konshisha 7 Beniseed All over Benue State with concentration in Gboko, Buruku, Katsina-Ala, Vandeikya, Makurdi 8. Mango All over Benue State 9. Sugar Cane Katsina-Ala and Buruku 10. Melon All over Benue State 11. Vegetables (mainly pepper, tomatoes All over Benue State with concentration in and okro) Gboko, Buruku, Makurdi and Tarka Source: Benue State Agricultural and Rural Development Authority (BNARDA) 2017. Table 3.4 illustrates that different types of good crops are produced in Benue

state. Almost all the types of food crops that are produced in Tiv area are capable of

thriving in Idomaland, Igede area, Etulo, and Nyifon, among others. Analytically, all

the agricultural development policies initiated, implemented and executed by Benue

State Government of Nigeria were aimed at transforming Benue State Agriculture.

However, because of the challenges that they had contributed marginally to

agriculture development. This gave room for the intervention of the Central Bank of

Nigeria (CBN) to the development of the agricultural sector in Benue State.

90

3.6 Conclusion

This discussion has attempted to variously examine issues such as the

foundation of Benue State, the people and the Benue State agricultural development

programmes. The chapter discussed these programmes with emphasis on the

establishment of Ministry of Agriculture and Natural Resources, Agricultural

Development Company (ADC), Benue Agricultural and Rural Development Agency

(BNARDA), and Benue Tractor Hiring Agency (BENTHA). The chapter emphasised

that the challenges associated with these policies have prevented them from

maximally achieving the set goals. This is an implication that they did not fully

transform the agricultural sectors in the State. However, the Central Bank of Nigeria

has intervened by initiating, implementing and executing agricultural development

programmes in Benue State since 1977, which was the year Agricultural Credit

Guarantee Scheme Fund (ACGSF), the first CBN’s agriculture development

intervention programme came into limelight.

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Endnotes

1. A. Goyol, J.D. Gomwalk: A man of Vision. Jos: LECAPS, 1996, P.110.

2. A. Goyol, J.D. Gomwalk: A man...P.110.

3. Oral Interview with I.I. Shaahu, C.76, Politician, Gboko, Benue State, 01.05.2019 4. https://www.vconnect.com/plateau-agricultural-development-programmes-jos-south- of-Plateau-State. Accessed on 01.05.2019

5. Plateau State, Agricultural Ventures. Jos: Government Publication, 1975, Pp.2-3.

6. Oral Interview with M. Ajima, C.74, Politician, North-Bank, Makurdi, 29.04.2019.

7. Plateau State, Agricultural Ventures... Pp.6-7.

8. Plateau State, Agricultural Ventures... Pp.6-7.

9. Plateau State, Agricultural Ventures... Pp.6-7.

10. Plateau State, Agricultural Ventures... Pp.6-7.

11. A. Goyol, J.D. Gomwalk: A man...P.110.

12. A. Goyol, J.D. Gomwalk: A man...P.112.

13. A. Goyol, J.D. Gomwalk: A man...P.113.

14. Oral Interview with E. Ochepo, C.70, Retiree, Ugbokpo, Apa Local Government Area, Benue State, 28.04.2019

15. Oral Interview with E. Ochepo...

16. A. Goyol, J.D. Gomwalk: A man...P.114.

17. Information Department, Benue-Plateau Agriculture. Jos: Government Printer, 1969, P.3.

18. Information Department, Benue-Plateau Agriculture... P.3.

19. Information Department, Benue-Plateau Agriculture... P.3.

20. Plateau State, Agricultural Ventures... P.6

21. R. A. Sargent, Economics, Politics and Social Change in the Benue Basin C.1300- 1700: A Regional Approach to Precolonial West African History. Enugu: Fourth Dimension Publishers, 1999, p.1.

22. R. A. Sargent, Economics, Politics and Social… p.1.

92

23. http://www.benuestate.gov.ng/index.php-2009 Accessed on 20.01.2017.

24. J. A. Sambe, “The Press and Social Mobilization in Benue State,” in A. Lyam, Y. A. Ochefu, J. A. Sambe & A. M. Adejo, Benue State in Perspective. Makurdi: Aboki Publishers, 2005, p.229.

25. M. O. Odey, The Development of Cash Crop Economy in Nigeria’s Lower Benue Province, 1910 – 1960. London: Aboki Publishers, 2009, p.35.

26. D. V. Uza, “Agriculture in Benue State” in A. Pine (ed.) Milestones in Leadership: Essays in Honour of Governor Gabriel Suswam. Makurdi: Aboki Publishers, 2010, p.67.

27. D. V. Uza, “Agriculture in Benue State”… p.67.

28. D. V. Uza, “Agriculture in Benue State”… p.67.

29. D. V. Uza, “Agriculture in Benue State”… p.67.

30. D. V. Uza, “Agriculture in Benue State”… p.67.

31. M. Kwanga and T. A. Kerenku, “Land and People of Bnue State,” in Y. A. Ochefu, J. Iyo & T. A. Varvar, (eds.) A History of the Peoples of Benue State. Makurdi: Aboki Publishers, 2007, Pp.1-3.

32. M. Kwanga and T. A. Kerenku, “Land and People… p.3.

33. M. Kwanga and T. A. Kerenku, “Land and People… p.3.

34. M. Kwanga and T. A. Kerenku, “Land and People… p.3.

35. M. Kwanga and T. A. Kerenku, “Land and People… p.3.

36. P. Ogiji, “The Food Basket Paradox: Implication for Stimulating Food Security in Benue State,” in P. Ogiji (ed.) The Food Basket Myth: Implications for Food Security and Agricultural Policy Reform (Essays in Honour of David Iornongo Ker). Makurdi: Aboki Publishers, 2004, p.157.

37. P. D. Dawan, “Aspects of the Geography of the Central Nigeria Area,” in A. A. Idrees Y. A. Ochefu (eds.) Studies in the History of Central Nigeria Area. Vol.1. Lagos: CSS Press, 2002, p.11.

38. B. W. Yio, “A History of Industrial Development Initiatives in Benue State, 1976 – 2011.” Ph.D Thesis, Department of History, Benue State University, Makurdi, 2014, p.74.

39. G. Yina, “Languages and the People of the Benue Region: A Descriptive Survey,” in Y. A. Ochefu, J. Iyo & T. A. Varvar, A History of the Peoples… p.20.

40. M. O. Odey, The Development of Cash Crop…p.37.

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41. G. Yina, “Languages and the People… p.21.

42. Federal Republic of Nigeria, 1991 Population Census.

43. H.T. Ahom, “A History of Land Conflict and Agricultural Production in Southern Tivland 1912-2008”. Ph.D Thesis, Department of History, Benue State University, Makurdi, 2012, p.23.

44. Benue State Agricutural and Industrial Development, Ministry of Information, Makurdi, p.8.

45. Oral interview with M.M. Upev, C.60, Business Woman, Ishangev-ya, 04.03.2018.

46. H.T. Ahom, “A History of Land... p.190

47. Oral interview with M.G. Wuanor, C.66, Farmer, Nanev, Adikpo, 16.3.2016.

48. H.T. Ahom, “A History of Land... p.190

49. H.T. Ahom, “A History of Land... p.190

50. H.T. Ahom, “A History of Land... p.190

51. Benue State Agricutural and Industrial Development...p.8.

52. H.T. Ahom, “A History of Land... p.190

53. H.T. Ahom, “A History of Land... p.190

54. Oral interview with S. Ogbu, C. Ogbu, C.65, Retiree, Agatu, Local Government Area, Benue State, 04.03.2018.

55. Oral interview with G. Ogah, C.48, Civil Servant, Oju, Benue Stat, 15.06.2017

56. U.A. Gbileve, “A History of Agricultural Development Company in Benue State, 1977-2007”. M.A. Dissertation, Department of History Benue State University, Makurdi, 2013, Pp. 75-77.

57. Benue State Agricultral and Industrial Development... p.8.

58. Oral interview with J. Opita, C.66, Retiree, Otukpa, Benue State, 20.09.2015.

59. Oral interview with Bem Kashi, C.42, Civil Servant, Makurdi, 28.04.2017.

60. The Impact of Benue State Agricultural and Rural Development Authority (BNARDA) on Agricultural and Rural Development in Benue State, Makurdi: Benue State Agricultural and Rural Development Authority (BNARDA) Publication, 1995, p.7.

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61. Benue State Agricultural and Rural Development Authority (BNARDA) Report on the 1993 Large Scale Reconneisance Survey (LSR), Makurdi; planning, monitoring and Evaluation Department, BNARDA Headquarters, 1995, p.1.

62. Oral interview with J.I. Mdzua, C.66, Farmer and Retiree, Mbayegh, Gaav Korinya, 01.12.2010.

63. T. Avav, “Benue State Agriculture: Sustaining the Food Basket Status in the Twenty- First Century” in A. Lyam et al (eds.), Benue State in Perspective, Makurdi: Aboki Publishers, 2005, p.263.

64. H.T. Ahom, “A History of Land... p.197.

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CHAPTER FOUR

CENTRAL BANK OF NIGERIA AGRICULTURAL INTERVENTION SCHEMES IN BENUE STATE, 1978- 2015

4.1 Introduction

This chapter traces the historical background of the Central Bank of Nigeria

(CBN). It also analyses the CBN agricultural intervention schemes in Benue State

starting with Agricultural Credit Guarantee Schemes Fund (ACGSF). In doing this,

the chapter reviews the components of ACGSF namely: Self Help Groups (SHGs),

Linkage Programme, the Trust Fund Model (TFM), and Interest Drawback

Programme (IDP). The last theme treated in this chapter is the Rural Banking Scheme

in Benue State. Here, the chapter emphasises on the Peoples’ Bank of Nigeria,

Community Banks (now Microfinance Banks) and Nigerian Agricultural Cooperative

and Rural Development Bank (NACRDB) which is now Bank of Agriculture (BOA).

4.2 Establishment of the Central Bank of Nigeria

Historical records attest that banking is the oldest of all financial service

professions.1 Linguistics (the science of language) and etymology (study of word

origins) notes that, the French word banque and the Italian banca were used centuries

ago to refer to “bench” or “money changers table.”2 Historians have observed that the

first bankers (more than 2,000 years ago) were money changers; they were located

usually at a table in commercial districts aiding travellers by exchanging foreign coins

for local money or replacing commercial banks notes for cash for a fee.3

T. O. Oyelami argues that the development of money and the emergence of

banks have a bearing from the temple. In early civilisation, a temple was considered a

safest place for storage of money and other valuables.4 It was considered as a sacred

place and as such were not to be penetrated by thieves. But the money kept in the

temple was not put to use, even though traders and government needed it desperately.

96

However, by the eighteenth century B.C. the issue of idle money had been surmounted by the priests who granted loans and properly kept their records. It is worthy to note that the word Bank itself received impetus from the table used by money changers in the temple.5 In the eighteenth century in Greece, bankers were known by the name Jra Pezitai.6

According to Peters and Silvia, the earliest bankers pledged a lot of their own money to support these early ventures, but it was long before the idea of attracting deposits from customers and loaning out these money emerged.7 Loans were granted to shoppers, landowners, and others at interest rates as low as six percent to as high as forty eight per cent a month for the riskiest ventures. Most early banks were Greek in origin; the banking industry gradually spread from the classical civilisation of Greece and Rome into Europe and many other places.8

In England, banking business in the western economic and financial history is usually traced back to the Coffee houses in London. As at 1565 when the London

Royal Exchange was established, money changers were already called bankers-which actually did not carry the meaning it does today.9 When banks emerged in different countries there was a need for a central bank to oversee the activities of the banking sector.10

The concept of banking in the contemporary sense was unknown to the native laws and customers of the geo-political entities and units making up the present

Nigeria. Modern banking can be said to have commenced in Nigeria during the second half of the nineteenth century, when Elder Dempster started the movement of money from one part of the country to another in order to boost its shipping business.11 Thus, banking industry predates Nigeria and her attainment of political independence.

97

In the earliest times, banking industry enjoyed a degree of freedom whose abuse and disastrous consequences make such freedom unthinkable in the present age, notwithstanding the demands of deregulation. Even in developed economies like the

United States, Britain and France, among others, the role of government in banking has been accepted without any form of resistance.12 In the words of a former

Chairman of the Federal Deposit Insurance Corporation of the United States, W. Isaac cited by Bennet:

We have periods when the banking industry was relatively free from regulation. Those periods were characterized by one crisis after another. It was not realistic to think that government will ignore banking.13

The above analysis clearly reveals that initially, banking industry was not regulated and the implication was that it faced crises upon crises. It was circumstances like these that motivated the establishment of central banks, including that of Nigeria.

The banking failures of the early 1950s led to the power of control of banking vested in the financial secretary.14 This triggered off two opposing camps. The

Nationalists who were of the view that a central bank was needed to perform this and other functions; and the colonialists who believed that it was premature to introduce a central bank in a country where there was no financial system.15 In order to reconcile these opposing views, three feasibility studies were carried out, namely: J. L. Fisher’s

Report, 1953; the International Bank for Reconstruction and Development (IBRD)

Mission Report, 1955; and J. B. Loyne’s Report, 1957.

Fisher, an adviser to the Bank of England in 1952 and the International Bank for Reconstruction and Development (IBRD) Mission in 1953, considered the establishment of a Central Bank in Nigeria as premature.16 Fisher based his study on orthodox banking principles and reported that it was not possible to establish a central bank on the grounds that the financial environment did not exist and that it could be

98

impossible to find the local staff to man it. He also contended that the West African

Currency Board (WACB) was equal to the bank in promoting savings and capital

formation.

Alternatively, Fisher recommended the formation of a development

corporation by the government, the issue of Treasury Bills, establishment of an

institution by government to lead to cooperative societies, and the use of Post Office

Savings for development purposes.17 He equally recommended a three-step

programme leading to the development of a central bank to include: a. Transfer of the operation of WACB to Africa so that its management would

eventually be indigenized after the local people have acquired the necessary

experience. b. Establishment of a Nigerian Currency Board and a separate Nigerian Currency to take

over Nigeria’s share of WACB assets. c. Establishment of a Bank of Issue as the embryo of a future Central Bank.18

In this regard, Mr. Fisher and the IBRD Mission in 1953 considered the establishment

of a Central Bank in Nigeria as premature. The latter recommended a state Bank of

Nigeria to take over the banking control functions of the Financial Secretary.19

However, Mr. Loynes, another adviser in the Bank of England (BOE), in his report in

1957 favoured the idea of establishing a Central Bank of Nigeria, which was

presented to the House of Representatives in March, 1958.20 The Act was fully

implemented on 1st July, 1959 when the Central Bank of Nigeria came into full

operation with an initial capital of £17.0 million.21

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Figure 4.1 Central Bank of Nigeria Abuja, Headquarters

Source: http://www.cbn.gov.ng, 02.03.2016

The CBN is being headed by the CBN Governor who oversees the affairs of the Bank. The Governor is assisted by Deputy Governors, namely: Deputy Governor

(Economic Policy), Deputy Governor (Operations), Deputy Governor (Financial

System Stability) and Deputy Governor (Corporate Services). The first CBN

Governor was a foreigner, he assumed this responsibility when the country was still under colonial rule and had continued to work until Nigeria became a republic. Before the end of 1963 leadership of the CBN was given to an indigene and since then, the

CBN is being headed by indigenous Governors. The succession list below confirms to the above statement.

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Table 4.1: Succession List of the CBN Governors, 1958-2018

S/N Name Tenure Started Tenure Ended

1. Roy Pentelow Fenton 7-24-958 7-24-1963

2. Alhaji Aliyu Mai-Bornu 7-25-1963 7-22-1967

3. Dr. Clement Nyong Isong 8-15-1967 2-22-1975

4. Mallam Adamu Ciroma 9-24-1975 6-28-1977

5. Mr. O.O. Vincent 6-28-1977 6-28-1982

6. Alhaji Abulkadir Ahmed 6-28-1982 9-30-1993

7. Dr. Paul A. Ogwuma 10-1-1993 5-29-1999

8. Chief (Dr.) J.O Sanusi 5-29-1999 5-29-2007

9. Prof. Chukwuma C. Soludo 5-29-2004 5-29-2009

10. Mallam Sanusi Lamido Sanusi 6-3-2009 6-29-2014

11. Mr. Godwin Emefiele 6-3-2014 Till – Date

Source: http://www.cbn.org.ng

Table 4.1 shows that since the establishment of the CBN 11 persons have steered the affairs of the Bank. Out of these persons only one person was a foreigner.

This is because the CBN was established and had commenced operation during the time Nigeria was under Colonial rule. But even with independence, Roy Pentelow

Fenton continued with the Governorship of CBN on till Alhaji Aliyu Mai-Bornu took over from him and from then all other successors were citizens of Nigeria.

With independence of Nigeria and the creation of more states, the CBN established a branch in each of the state capital for easy accessibility to all and sundry.

Even non-literate farmers in Benue State always consult the Makurdi Branch of the

Bank when there is need. The Bank was headquartered in Lagos but with the removal

101

of the Federal Capital Territory (FCT) from Lagos to Abuja, the headquarters of the

CBN was also moved to Abuja for administrative convinience.22

4.3 Objectives and Functions of the Central Bank of Nigeria

The mandate of the CBN is derived from the 1958 Act of Parliament, as

amended in 1991, 1993, 1997, 1998, 1999, and 2007. The CBN Act of 2007 of the

Federal Republic of Nigeria charges the Bank with the overall control and

administration of the monetary and financial sector policies of the Federal

Government.23

The main objectives of the CBN are to issue legal tender currency in Nigeria,

maintain the external value of the legal tender currency, promote monetary stability

and a sound financial system as well as act as banker and financial adviser to the

Federal Government and banker of the banks.24 However, it should be noted that the

CBN’s Research Department outlines the above objectives in 1997 classified these

objectives as the statutory or core functions of the CBN.25 Our concern here is to note

that these functions served as a solid rock upon which the CBN stands to affect the

Benue economy and Nigeria on the broader perspective. The discussion here is

restricted to the developmental functions of the CBN.

Developmental functions of the Bank are also known as non-traditional

functions. Commenting on these functions, E. S. Ezekiel elaborates that:

The developmental functions of central bank are more germane to the developing than the developed countries. The latter economies have necessary financial structure and arrangements which give their central banks the scope to exercise their traditional functions. The former economies lack them. Thus in developing economies, a task before central banks is to build up the financial institutions and markets but the later adopted specific sectorial programmes for directing credit to the productive sectors of the economy.26

In carrying out the task of economic development, the Central Bank created the

environmental and institutional framework conducive for the mobilisation and

102 allocation of resources from surplus to deficit sectors of the economy. In this regard, the CBN played very significant roles in the development of the Nigerian economy.

The first developmental function undertaken by the CBN, soon after its establishment in 1959, was the development of local money and capital markets. One of the initial reasons for setting up the local money market was to discourage the outflow of surplus fund from Nigeria into investments in the London money market.

Another reason was to encourage the development of a well functioning money market in order that money development would reflect developments in the domestic economy rather than those of other countries and thus enable the CBN to eventually be able to use monetary policy instruments.27

Another way in which the CBN has influenced the development of the

Nigerian financial system is through the promotion of, and continued assistance to the development of banks and institutions. These include the Nigerian Industrial

Development Bank (NIDB), the Nigerian Bank for Commerce and Industry (NBCI), the Nigerian Agricultural and Cooperative Bank (NACB), the Nigerian Agricultural

Insurance Company (NAIC), the Federal Mortgage Bank of Nigeria (FMBN), the

Nigerian Deposit Insurance Corporation (NDIC), the Nigerian Export-Import Bank

(NEXIM) and the Securities and Exchange Commission (SEC).28

In order to promote agricultural and manufacturing activities, the CBN, through its Monetary Policy Circulars (MPCs), prescribed that not less than 15 and 42 percent of commercial banks’ credit should be granted to agricultural and manufacturing enterprises. The merchant banks were mandated to lend not less than

10 and 45 percent of their loan portfolio to these respective sectors.29 However, this mandatory credit allocation requirement was abolished. Nevertheless, banks are enjoined to continue to provide adequate credit to these growth sectors of the economy. 103

The Refinancing Scheme for Medium and Long Gestation Agricultural Project is an initiative of the CBN, aimed at providing funds for extending credit for the establishment and sustenance of medium and long gestation agricultural projects whose moratorium and financing requirements have hitherto been unattractive to banks.30 Some of the enterprises covered by the scheme include cocoa, rubber, oil palm, coffee, gum Arabic, cashew, tea, fish, and trawling, et cetera.31 The modalities for the operations of the scheme were prepared with inputs from stakeholders through series of workshops held all over the country by the CBN in 2000.

Extrapolating from the above, it becomes glaring that the CBN performs numerous functions and these functions are classified as monetary policy functions, supervisory, and development functions. Agricultural development belongs to the development function of the CBN (For the details of these functions also see

Appendix I). In order to carry out the functions above successfully, the Bank has an organisational chart and structure as presented in the next page:

104

Board of Directors

Governor

Corporate Secretariat Development Finance

Governor’s Department Internal Audit

Risk Management Strategy Management

Deputy Governor Deputy Governor Deputy Governor (Financial Deputy Governor (Corporate Services) (Economic Policy) System Stability) (Operations)

Corporate Financial markets Banking Supervision Banking & Communications Payments System Monetary Policy Consumer Protection Finance Branch Operations Financial Policy & Research Human Resources Regulation Currency Statistics Operations Legal Services Other Financial Institutions Information Trade & Exchange Medical Services Supervision Technology

Procurement and Reserve Management Support Services

Security Services

Figure 4.2 Organisational Chart of the Central Bank of Nigeria Source: http://allnigeriabanks.com/organogram-central-bank-nigeria-cbn Accessed 27.04.2017. The organogram above indicates that as at the time of this study, the CBN had

27 Departments. Each of these Departments compliments one another for the smooth

and healthy functioning of the Bank. The CBN Governor is at the echelon of the

affairs of the Bank. The CBN is organised into five zonal offices that are headed by

Zonal Controllers, except for the Abuja Head Office, which is under a co-ordinator.

The Zonal Offices are located at Enugu, Bauchi, Ibadan, Kano, and Abuja. The zones

are further broken down into branch offices, presently located at Abuja, Enugu,

105

Bauchi, Edo (Benin City), Borno (Maiduguri), Cross River (Calabar), Imo (Owerri),

Kaduna, Kano, Kwara (Ilorin), Ogun (Abeokuta), Oyo (Ibadan), Plateau (Jos), Rivers

(Port Harcourt), Sokoto (Sokoto); while the currency centres are located at Adamawa

(Jimeta-Yola), Benue (Makurdi), Niger (Minna), Ondo (Akure), Katsina, and Akwa

Ibom (Uyo) States.32

4.4 Channels Adopted by the Central Bank of Nigeria for Agricultural Development in Benue State

Channels here are financial institutions empowered by the CBN for the

purposes of promoting agricultural development in Benue State and elsewhere in the

country. For example, Agricultural Credit Guarantee Scheme Fund (ACGSF), Self-

Help Groups (SHGs), Trust Fund Model (TFM), and Interest Drawback Programme

(IDP) the Bank of Agriculture, Union Bank PLC, Excellent Microfinance Bank, and

Lapo Microfinance Bank, among other financial institutions in Benue State,. Over the

years, the CBN has made concerted efforts to revamp the real sector of the Nigerian

economy (Benue State inclusive) in view of its contributions to the GDP, employment

and economic development.33

The real sector is where goods and services are produced through the

combined utilisation of raw materials and other factors of production such as labour,

land and capital.34 It, therefore, forms the main driving force of any economy, and the

engine of economic growth and development. The real sector comprises agriculture,

industry, building and construction, and services. Agricultural component of the real

sector just like any other component needs finance. Agricultural finance is aimed at

making funds available to farmers at the right time and at affordable cost, in order to

optimise its contributions to the nation’s economy.35 CBN has played an outstanding

role in this regard.

106

This segment has been written to intimate the reader on how the CBN in

tandem with the Federal Government of Nigeria (FGN) fiscal, economic and

agricultural policies have initiated, implemented and executed intervention schemes

aimed at developing agriculture in Nigeria’s and in this case, Benue State.

4.4.1 Agricultural Credit Guarantee Scheme Fund (ACGSF) 1978

The Agricultural Credit Guarantee Scheme Fund (ACGSF) was established by

ACGSF Decree No. 20 of 1977 and it took off in April, 1978 under the management

of the Central Bank of Nigeria (CBN).36 To enhance effective control of the scheme

under consideration, a Board of Directors was constituted for policy making. The

decree originally provided for a fund of N100 million subscribed to by the Federal

Military Government (60 per cent) and the CBN (40 per cent). The share and called-

up capital of the fund was increased to N 3.0 billion in 2001 and to N 10 billion since

2013. Since the inception of ACGSF 85,951 loans valued N 71.47 billion have been

guaranteed.37

The purpose of the fund is to provide guarantee in respect of loans granted by

any bank for agricultural purposes as defined below with the aim of increasing the

level of bank credit to the agricultural sector. “Loan” under the decree includes

advances, overdrafts and any credit facility. Agricultural purposes for which loans can

be granted under this scheme are those connected with:

i. The establishment or management of plantation for the production of rubber,

oil palm, cocoa, coffee, tea and similar crops.

ii. The cultivation or production of cereal crops, tubers, fruits of all kinds, cotton,

beans, groundnuts, sheanuts, benniseed, vegetables, pine-apples, bananas and

plantains.

iii. Animal husbandry, that is to say, poultry, piggery, cattle rearing and the like;

fish farming and fish capture. 107

iv. Processing in general where it is integrated with at least 50 per cent of farm

output. For example, cassava to garri, oil palm fruit to oil and kernel

groundnut to groundnut oil, et cetera.

v. Farm machinery and services.38

In connection with the purpose of these loans is the security requirement. The

security which may be offered to a bank for the purpose of any loan under the scheme

may be one or more of the following: a. A charge on land in which the borrower holds a legal interest or a right to farm, or a

charge on assets on the land including fixed assets, crops or livestock. b. A charge on the movable property of the borrower. c. A life assurance policy, a promissory note or other negotiable security. d. Stocks and shares. e. Personal guarantee. f. Any other security acceptable to the bank. For loans of N20,000.00 and below, banks

are not expected to demand for tangible securities and feasibility reports.39 In relation

to the above measures, the Research Department of the CBN declares that:

The process of accessing the scheme is simple. Potential beneficiaries are requested to provide collateral for loan amounts above N20, 000 while, below the amount can be guaranteed without collateral. The collateral should be in a tangible form or inform of 25% cash security of the intended loan amount in the form of savings. Once the bank has been provided with all the relevant information and collateral, where applicable, the farmers can benefit from the credit.40

It is glaring from the above representation that CBN does not just give loans to

farmers without procedures and other relevant security measures. The security

requirement for huge loans made these loans inaccessible to many farmers. It is in line

with security requirement that some workers of Benue State Agricultural and Rural

Development Authority (BNARDA), who are also part-time farmers such as Choko

Alfred41 (Guma Local Government Area), Felicia Ajio42 (Katsina-Ala Local 108

Government Area), and Gabriel Okewu43 (Oju Local Government Area), Betty M.

Vembeh44 (Tarka Local Government Area) noted in their separate interviews with the researcher that it was difficult for them to benefit from the ACGSF huge loans because they did not have collateral security. However, because of passion they have on farming they have no option than to join the CBN Anchor Borrowers programme, which did not demand such collateral security from the borrowers. Moreover, under the canopy of Mikap (Miva Rice), Nigeria Limited which gives them farming inputs which they return it at the end of each cropping season in kinds, the ACGSF, according to them, can only be accessed by the well to do Nigerians and Benue indigenes in particular, hence they are the only people to meet up with their stipulated conditions.

However, it should be noted that many people in Benue State benefited from the ACGSF credit facilities (See Appendix II for the list of some beneficiaries in 2009 and 2010 respectively). The table below also demonstrates the cumulative total of beneficiaries and amount benefited from the ACGSF loans in Benue State from 1978 to 2015. Table 4.2: Cumulative Total of ACGSF Loans Guaranteed for Benue State, 1978 – 2015 (N M000)s Year Number Amount 1978-2003 20, 462 251,524.00 2004 2,538 80,517.00 2005 2,100 99,839.08 2006 3,284.0 189,780.00 2007 1,508.0 110,525.00 2008 6,452 367,043.00 2009 3,741 383,000.80 2010 1,063 297,569.00 2011 708 352,015.00 2012 793 466,545.95 2013 557 485,295.00 2014 1,373 909,875.60 2015 1,318 694,655.00 Grand Total 45,896 4,694,188.35 Source: Adopted (Modified) from Development Finance Office, Development Finance Department, Central Bank of Nigeria, 2017.

109

Table 4.2 above illustrates that from 1978 – 2003, the beneficiaries of ACGSF loan facilities were lumped together and totalled 20,462 and they had benefited a sum of N 251,224.00. However, the whole number of the beneficiaries was 45, 896 while the total amount disbursed to the beneficiaries amounted to a tone of N 4,694,188.35.

In most cases, when the number of beneficiaries increased, the amount benefited also increased. In order to ensure that loans are used for the purposes which they are meant and foster repayment, the CBN organizes courses on finance accounts for agricultural credit officers, undertakes farm visits in connection with pre-guarantee appraisals, and post-guarantee monitoring of projects and investigate default claims.45

The Bank also holds regular meetings with farmers and officials of the lending banks, Ministries of Agriculture and Agricultural Development Projects (ADPs) on the operations of the scheme.46 To provide incentives for efficient utilisation of bank loans, farmers who benefit from loans under the ACGSF and achieve outstanding performance in output, loan repayment and adoption of good husbandry practices, are presented with certificates of merit annually. The CBN also introduced an award of certificate to the best bank in 1995.47 All these were done in order to encourage both the participating individuals and institutions to continue with the course of agricultural development in Benue State and beyond.

In this regard, the value of loans guaranteed by the ACGSF has increased.

Agreeing with this argument G. O. Evbuomwan declares that:

The value of loans guaranteed under the scheme grew from N35,642.4 thousand in 192281 to N11,441,978.8 thousand in 2015, while the number of beneficiaries grew from 1,295 in 1981 to 69,436 in 2015. Cumulatively, the ACGSF has serviced a total of 998,908 beneficiaries from the inception to end December, 2015 with the sum of N95, 833, 582. 60.48

110

These loans are granted to different people; some have accessed and repid back while others did not repay as was stipulated by the agreement. Table 4.4 below shows the quantum of loan repayment under ACGSF in Benue State between 1978 and 2015.

Table 4.3: Cumulative Total of ACGSF Loans Repaid Annually By Benue State, 1978 – 2015 (N M000)s

Year Number Amount 1978-2003 11,348 124,836.20 2004 2,400 60,111.0 2005 2,090 57,300.0 2006 2,038.0 99,035.0 2007 2,001 114,160.0 2008 380 29,600.0 2009 1,255 152,553.00 2010 1,700 95,445.00 2011 794 248,168.00 2012 736 351,370.00 2013 439 372,290.00 2014 686.00 479,920.00 2015 560.00 511,500.00 Grand Total 26,427 2,696,918.20 Source: Adopted from Development Finance Office, Development Finance Department, Central Bank of Nigeria, 2017. The comparism between the number of loans granted and the number of loans repaid under ACGSF as illustrated in table 4.2 and table 4.3 have shown that a good number of people have collected loans from the scheme but failed to repay. This implies that a reasonable sum of money have been lost through the lending process, thereby thwarting the aim of the ACGSF programme. The comparism between loans guaranteed and loans repaid tables for Benue State ACGSF from 1978 to 2015 shows that the total number of 45,896 persons was granted a total amount of N4, 694,188.35 while only 26,427 persons paid back their loan and this amounted to a tonne of N2, 696, 918.20. The implication is that N1, 997,270.15 was not repaid and this has hindered effective operation of the programme under review. It must be emphasised, however, that the loans obtained under ACGSF were meant for the cultivation of different crops nationwide. In Benue State for example, in

2009 and 2010, Gbila Awolowo borrowed N60,000.00 for rice farm, Fidelis I. Akosu

N600,000,00 for rice farm, Caroline Umammeh N100,000.00 for yam farm, Martha

Ityough N750,000.00 for poultry farm, and Adah Anthony Aba N40,000.00 for 111 poultry farm, among others.49 (For further details also refers to appendix II). Also for the agricultural activities undertaken by the beneficiaries of the ACGSF in the area under review, see the distribution in table 4.5 thus.

Table 4.4: Annual Cost Returns of Beneficiaries of ACGSF in Benue State, 2009- 2010 Item Average Cost (Naira) Percentage of (mean value of Beneficiaries Average Cost) Land preparation 12,000.00 17.39 Planting 15,000.00 21.74 Fertilizer application 6,800.00 9.86 Weeding 7,200.00 10.43 Harvesting 7,733.00 11.21 Seeds/cuttings 20,270.00 29.38 Total variable cost (TVC) 69,003.30 100.00 Total Revenue (TR) 136,666.67 Gross Margin (TR-TVC) 67,663.37 Source: E. A. Enenche, S. B. Ohen & G. E. Umeze, “The Effects of Agricultural Credit Guarantee Scheme Fund (ACGSF) on Production Efficiency of Rural Farmers in Benue State, Nigeria,” in Global Journal of Science Frontier (p. unstated).

From table 4.4 above, there is indication that the annual cost returns of the beneficiaries of ACGSF in Benue State were not available apart from the ones of

2009-2010. The available ones showed that labour related activities (land preparation, planting and fertilizer application) and other input making up the short cost of production is about 69,003.30 naira to cultivate a hectare of farm in the study area.

The total revenue of 136,666.67 naira accrued by the Benue farmers 67,663.37 naira is gotten as the gross margin. This translates to approximately 5,000.00 naira per month as income to the farmer. This amount is less than the 18,000 naira minimum wage in Nigeria as at the time of this study. Extrapolating from the above, E. A.

Enenche, S. B. Ohen and G. E. Umeze argued that: “It is thus evident that farming is not profitable enough except with improved input so that farmers can work on hectares of land thereby reducing cost of production and increasing marginal revenue”.50

112

Table 4.5: Distribution of Production Based on Type of Agricultural Activities in Benue State, 2009-2010

Type of Agricultural Activity Frequency Percentage Rice production 76 16.9 Guinea corn (sorghum) production 79 17.6 Maize production 19 4.2 Cocoa production 00 00 Fish production 00 00 Yam production 155 34.4 Groundnut production 08 1.8 Pepper production 15 3.3 Poultry production 5 1.1 Cassava production 93 20.7 Total 450 100 Source: E. A. Enenche, S. B. Ohen & G. E. Umeze, “The Effects of Agricultural Credit Guarantee Scheme Fund (ACGSF) on Production Efficiency of Rural Farmers in Benue State, Nigeria,” in Global Journal of Science Frontier (p. unstated).

Statistics on the distribution of production based on type of agricultural activities in Benue State were not found for many years. The table shows that farmers engaged in yam production with a total 155 of the beneficiaries representing 34.4% of the respondents. This is followed by cassava production which is 20.7% and Guinea corn (sorghum) production stands at 17.6% of the total production. This implies that yam, cassava and sorghum are produced more in the study area. However, other crops like rice, maize, pepper and groundnut are also produced but not as much as yam, sorghum, cassava, and rice.

Despite the scheme’s achievements during the past thirty two years of its operation, it nevertheless coped with various operational constraints. Initially, the

ACGSF achieved its objective of encouraging commercial banks to lend to agriculture, and the number of participating banks reached its peak of 29 in 1989.

113

However, the number of participating banks started to fall drastically and in

1997/1998, only five banks used the services of the scheme.51 In 2000s, the number declined again, as attested to in table 4.7 below:

Table 4.6: The Number of Participating Banks in ACGSF in Benue State 1978- 2016 Year Number of Participating Names of Banks Banks 2007 3 First bank, Union Bank and Afribank 2008 2 First bank and Union Bank 2009 2 Union Bank and First bank 2010 3 Union Bank, First bank and Bank of Agriculture 2011 3 Union Bank, First bank and Bank of Agriculture 2012 3 Union Bank, First Bank and Bank of Agriculture 2013 3 Union Bank and Lapo Microfinance Bank 2014 3 Lapo Microfinance Bank and Union Bank 2015 1 Bank of Agriculture Source: Development Finance Office, CBN, Makurdi, 2018 Table 4.6 shows that from 2007 to 2015, the number of Participating Banks in the ACGSF declined below five which was the least number of Participating Banks as at 1997/1998. Commenting on the participating banks under ACGSF, an informant,

Solomon Ukaibe who is the Agriculture Credit Officer of Lapo Micro-Finance Bank,

Makurdi, and Daniel M. Adi of Mikap (Miva Rice) Nigeria Ltd. Makurdi noted that most of the banks are unwilling to join or continue with the scheme because of the high risks associated with it.52 They identified these risks to include: untransparent nature of farmers (ACGSF beneficiaries), poor culture of loan repayment, and lack of collateral for capital loans.53 Relatedly, Isaiah Ande (one of the CBN’s staff who processed agric-loans at the Makurdi Branch) noted that many farmers are willing to access the ACGSF loans but many participating commercial banks have declined from the scheme and as at the time of this study only Union Bank of Nigeria Plc

(UBN), Diamond Bank, and Microfinance Banks like Lapo Microfinance and

Excellent Microfinance are participating.54

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Other challenges associated with this scheme are lack of trained and

experienced personnel in agricultural financing and loan administration in most of the

commercial banks in Benue State. Delay in approving and disbursing loans to farmers

due to over-concentration of decision making at lending banks’ Head Offices has

hindered farmers from cultivating on time thereby leading to low yield. Low capital

base of the fund actually impeded agricultural Activities in Benue State. Furthermore,

deregulation of the financial market and the distress of the banking industry in 1990’s

which significantly reduced the interest of the banks to participate in the ACGSF

operations thereby leading to insufficient loan facilities to farmers which in turn led to

low productivity.55 O. Ayegba and D. I. Ikani shared the same point of view as they

reveal that:

Between 1978 and 1989 when the government stipulated lending quotas for banks under the scheme, there was consistent increase in the lending portfolios of banks to agriculture, but after the deregulation of the financial system, banks started shying away by reducing their loans to the sector due to the perceived risk.56

In order to reverse the declining trend, several innovations and products were

introduced under the scheme to encourage financial institutions to continue

participating in ACGSF activities, which include: Self-Help Groups, Trust Fund

Model (TFM), and Interest Drawback Programmes (IDP).57 The aforementioned

products initiatives are reviewed in the succeeding discourse one after the other.

4.4.1.1 Self-Help Groups (SHGs) Linkage Programme

Prior to the introduction of this programme, SHGs were operated by different

ethnic groups; Tiv called it Adashi, Idoma Otataje (Igaja),Igbo Esusu, Ibibio Efe, and

Yoruba Ajo, Idoma igeya, among others. However, the Self-Help Groups Linkage

Programme of the CBN for savings mobilisation was launched in 1991 and became

operational in 1992.58 It was promoted jointly by the CBN and African Rural and

115

Agricultural Credit Association (AFRACA). The main feature of this programme was the formation of farmer groups either as registered co-operatives or informal groups.59

The programme was expected to improve the operations of the informal system of the SHGs and adapt the operations of the conventional banking institutions.

The SHGs were expected to save regularly with a conventional bank for at least six months before they were granted loans which were multiples of their savings. This relationship is expected to be continuous as long as savings by the SHGs continue and repayment is being made by the groups.60

The programme was designed to bridge the missing link between borrowers and the rural formal finance institutions. There was a general belief that the flow of funds in the rural areas had been one way which was from banks to borrowers since rural dwellers do not save with formal financial institutions. The introduction of the savings component in the programme was to create a way for the flow of fund, which was credit from the financial institutions. The two way flow of funds had, however, been operational in Nigeria among the informal financial institution. In the informal financial sector, the loans given out by informal institutions were usually sourced from the savings of members of the group.61

In Benue State, modern SHGs programme started since its inception in Nigeria in 1991. The programme is aimed at mobilising savings in rural areas for credit delivery. This was done by encouraging the moral populace to save with commercial banks for at least six months. These savings were then used as collaterals to enable them get loans in multiples of their savings.62 Contributing on the expectations from these loans A. S. Ngutsav had this to say:

Loans are expected to increase their land acreage, which would lead to increase in their output, and income, which would subsequently transform their lives. The success of this programme depends on the ability of commercial banks to operate rural branches to identify and enlist numerous Self Help Groups existing in the rural areas.63 116

The point here is that this programme was meant to boost agricultural production and helped commercial banks to form a synergy for the success of this CBN’s agricultural programme.

Ngutsav and Akaahan have shown in their study that there were only eight commercial banks which operated in Benue State with a total of 22 branches spread across the State64 as shown below.

Table 4.7: Distribution of Commercial Banks in Benue State, 1992-1998

S/No Name of Bank State Branches Headquarters 1 Bank of the North (BON) Plc Makurdi Gboko, Yandev, Ugbokolo, and Tse- Agberaba 2 United Bank for Africa (UBA) Plc Makurdi Zaki-Biam, Igumale and Makurdi 3 Union Bank of Nigeria (UBN) Plc Makurdi Aliade, Gboko, Oju and Lessel 4 First Bank of Nigeria (FBN) Plc Makurdi Katsina-Ala, Vandeikya and Otukpo 5 Afribank of Nigeria Plc Makurdi 6 Habib Bank Plc Makurdi 7 New Nigerian Bank Plc Makurdi 8 Savanna Bank Plc Makurdi Source: CBN, Makurdi Cited in A. S. Ngutsav, T.J. Akaahan, “Self Help Groups Linkages as a Panacea for Declining Food Production in Benue State”, in P. Ogiji, (ed.) The Food Basket Myths, Implications for Food Security and Agricultural Policy Reform in Nigeria: Essay in Honour of David Iornongo Ker. Makurdi: Aboki Publishers, 2004, p.26.

Table 4.7 indicates that eight commercial banks participated in SHGs Linkage

Programme in Benue State and that all of them were headquartered in Makurdi with branches in other settlements, but others do not have branch offices. Those that had branch offices were BON Plc, UBA Plc, and UBN Plc, while Afribank of Nigeria Plc,

117

Habib Bank Plc, New Nigeria Bank, and Savannah Bank Plc. did not have branches.

It might be that those banks which had branches in different settlements across the

States had more customers and were stronger than those which did not have.

There were many Self Help Group existing in Benue State during our study period but the following were the only registered ones: Dura Self Help Groups,

Ugbema, Orngu Dwem Farmers Cooperative Society, Jukun Fishers Groups,

Wurukum, Dzar Cooperative Farmers Associated, Mbayawe Family Farmers

Association, Ati Family Farmers Association, Agber Chor Self Help Group, Itakpa

Rice Farmers Association, Ito, and Tarkaa Asough Farmers Association.65

According to the Central Bank of Nigeria, the most viable of these registered

Self Help Groups, were Orngu Dwem Family Farmers Association, Dura Self Help

Group, Jukun Fishers Association and Itakpa Rice Farmers Association. All these mobilised groups operated through the Union Bank of Nigeria Plc.66 From 1992-1998 these groups have mobilised themselves to access agricultural loans from CBN’s

SHGs scheme as presented in the succeeding table 4.8 below:

Table 4.8: Annual Savings Mobilized by Participating Banks in Benue State

Year No of SHGs Amount 1992 3 13,500 1993 3 22,350 1994 3 25,000 1995 4 35,000 1996 4 56,500 1997 8 70,850 1998 10 65,150 Source: Union Bank, Savings Book for Self Help Groups.

Table 4.8 shows that total savings by the SHGs have increased steadily except in for 1997 when there was a decline from N70, 850 in 1998 to N65, 150 in which years. The Participating Banks after mobilizing savings from the SHGs were expected to give loans in multiple of their savings. Having assessed these credit facilities some

118 of these groups paid back all that they have borrowed but some did not pay back the entire amount borrowed. Details of these repayments are presented in the table 4.9 below.

Table 4.9: Loan Disbursed and Repayment in Benue State as at 31st December, 1998 Years No of Amount disbursed Repayment Percentage of SHGs repayment 1992 3 90,000 90,000 100 1993 3 110,000 100,621 91.47 1994 3 301,000 301,000 100 1995 2 205,000 188,164 91.70 1996 5 306,000 360,000 100 1997 6 399,000 333,660 83.62 1998 7 471,000 41,000 73.14 Total 1,936,000 1,717,945 88.74 Source: Union Bank, Loan Book.

Table 4.9 shows an astronomical increase in the amount of loans disbursed except for 1995, when there was a decline in both lending and rate of repayment. The loans for 1994 and 1996 were fully repaid. The rate of repayment for the years too was reasonable. The beneficiary of SHGs used their loan facilities for agricultural activities and had their different output. These varying outputs have been demonstrated in table 4.10

Table 4.10: Annual Output of SHGs in Benue State Measured in tones (1992 – 1998)

Years Output (000)

1992 49

1993 71.3

1994 91.1

1995 93.7

119

1996 103.0

1997 94

1998 131.1

Source: Self Help Groups Cited in A.S. Ngutsav & T. J. Akaahan, Self Help Group.

Table 4.10, on the other hand, depicts the performance of SHGs in terms of their productivity. It displays that the annual output of the said groups was dynamic. It rises and falls. In 1992, its output was 49; in 1993 it increased to 71.3; in 1994 the output of SHGs in Benue State was 91.1 which slightly increased to 93.7 in 1995.

This increased to 103.0 in 1996. Unfortunately, the year 1997 witnessed failure in output. But out put increased greatly to 131.1 in 1998. The beneficiary farmers’ group paid back these loans according to the branch of bank collected from. It is shown that

Union Bank was one of the leading banks in loan disbursement. This made its repayment amount to be impressive compared to others. See the table below for detail of these loans.

Table 4.11: Breakdown of Loan Repayment According to Banks Name of Bank No of Groups Loan N Repayment N Union Bank, Makurdi 1 133,000 121,000 Union Bank, Gboko 4 1,089,000 896,000 Union Bank, Oju 1 437,000 397,250 Union Bank of Nigeria, Makurdi 1 277,000 21,695 Total 7 1,936,000 1,717,945 Source: Union Bank Loan Repayment Book.

Table 4.11 shows that out of the banks operated in Benue State in the 1990s, only the Union Bank of Nigeria with its branches in Makurdi, Gboko and Oju, was actively involved in the programme. From the table, a total number of 7 groups made loan repayment to Union Bank Plc out of which four were in Gboko Branch, and one from Oju, and two from Makurdi branches.

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In as much as the SHGs Linkage Programme was successfully carried out in

Benue State, it still faced some difficulties that limited their operations. Firstly, low capital base of the members limit their ability to save. The available funds were used to meet the rising cost of the basic necessities of like life feeding, accommodation, school fees and acquisition of farm inputs like fertilizers, seeds and chemicals. The few ones who were even capable of saving preferred to store their wealth in produce form rather than in cash. This was due to low price prevailing at harvest and most of them did not want to “throw away” their produce on such give away prices.67

Furthermore, the distance of SHGs from lending banks constituted a challenge. Almost all the SHGs enlisted in the programme were seen to be far from their partner banks, except Jukun Fishers Group which was located in Makurdi and was linked up with Union Bank, Makurdi.68

Next is the problem of lack of awareness. Most of the SHGs in Benue State were not aware of the existence of the programme only those associations covered by the Benue State Self Help Farmers Association that were registered under the scheme.

Nothing was done by the state or local governments to enlighten and bring more associations under the programme.69 This was in contrast with the “Food Basket” position of the State. The unawareness associated with this programme is also expressed by a Director, Research Department, CBN Abuja Headquarters who argued

“that the CBN did not release money to finance SHGs programme”.70

There was the challenge of poor records keeping. The records of SHGs in the area under consideration in most cases were not properly kept.71 In most cases, crisis within these groups emanated from suspicions of improper accounting procedures.

Mismanagement of records is a common indicator of SHGs and similar organisations in Benue State and elsewhere in the country.

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The natural hazards; in form of shortages of rainfall normally affected

agricultural productivity. The shortage of rainfall in 1997 destroyed many crops

particularly rice, groundnuts and soyabeans which constituted the major crops of the

SHGs. That was a major impediment to farmers in a whole State.72 This explains why

there was a decline in output in that year.

In addition, there were also administrative issues such as delays in submission

and processing loan applications, which resulted in late disbursement of funds. Banks

on their part complained about the late submission of application forms, which in

many instances resulted in late disbursement of funds. This delay, according to Jude

Akighir, “made some farmers to spend the money they had collected to farm on other

things since the farming season had passed; this, as a matter of fact, contradicts the

purpose of disbursing such loan facilities”.73 It was as a result of the above and related

challenges that prompted the CBN to introduce the Trust Fund Model (TFM) in order

to continue with the course of agricultural development in Nigeria in general and

Benue State in particular.

4.4.1.2 The Trust Fund Model (TFM)

The Trust Fund Model (TFM) was introduced as a credit guarantee product

designed to facilitate and expand the channels of credit purveyance to farmers under

the Agricultural Credit Guarantee Scheme (ACGS). The TFM was introduced in 1997

to reinforce the confidence of banks in granting credit facilities to farmers.74 Under

the TFM, State and Local Governments, Oil Companies and Non-Government

Organisations (NGOs) are encouraged to support the provision of credit resources by

placing funds with banks as part-security to augment farmers’ cash savings and

securities. When the State Governments and Organisations concede, a tri-partite

arrangement comprising the CBN, State Government and the lending bank is put in

122 place in favour of the farmers.75 Thus, the practicing groups of farmers are encouraged to continue and improve upon their regular savings with the banks.

The savings of the farmers were secure 25 per cent of the loan amount they intend to raise with their partner bank. The Trust Fund is deposited by the bank in blocked investment account. It secures 25 per cent of the farmers’ loans.76 The CBN through the ACGSF issued 75 per cent guarantee which effectively covers the remaining 50 per cent. Implicitly, the lending bank exposure is lowered to 12.5 per cent from the original 25 per cent.77 Sometimes, a Trust Fund provider, because of the lower capacity of its farmers, may decide to increase its stake beyond 25 per cent. The role of each party is expected to play in actualising this intermediation are sealed and signed in a memorandum of understanding (MoU).78

According to C.N.O Mordi, A. Englama and B.S Adebusuyi, to successfully implement the TFM, the following activities are relevant: a. The CBN manages the programme and markets it to State Governments, Oil

Companies and other interested parties. b. The State Government or Oil Company that is convinced about the programme

and wants to alleviate poverty through improving the productivity of rural farmers

under the TFM, takes a decision to commit fund to it in any of the operating

banks. c. The State Government or the Oil Company then invites banks within the vicinity

to partner with it. The decision to participate is entirely that of the bank; there is

no coercion. d. In selecting the participating groups of farmers, it is the primary responsibility of

the bank to know its customers. However, because of the number of farmers

involved, a working relationship that takes care of banking discipline is arrived at

with State’s Agricultural Development Project (ADP) to identify the farmers and 123

group them in tens and twenties as the case may be. The partner bank reserves the

right to work with ADP or cross-check selection made.

e. A tri-partite meeting between the State Government, the lending bank(s) and the

CBN would then follow to firm up a MoU to be signed by all the parties involved.

f. The State Government would then deposit the Trust Fund with the partner bank(s)

to signal the take off of the programme. The Trust Fund is deposited in an interest-

yielding account.

g. The bank grants credits to farmers at about four times the level of their savings.

h. On qualifying for loan through the issue of Application for Guarantee, the CBN

cross-checks the project of the farmers to ensure that there is no pseudo-farmer

and thereafter issues the bank with the appropriate Guarantee Certificate.79

In a bid to ensure that the TFM is not abandoned, CBN has encouraged the

State Governments to institutionalise the Trust Fund by passing a bill to make the

programme a unit in the Ministry of Agriculture and Water Resources so that people

will continue to tap its benefits.80 These benefits of the programme include:

i. Providing the opportunity for the farmer to increase farm productivity, thereby

enhancing poverty alleviation. ii. Enhancing the farmers’ access to loan through group lending, which may not be

feasible as an individual. iii. The opportunity to benefit from the CBN Interest Drawback Programme (IDP),

if loan repayment is on schedule. iv. Enhancing revenue both to the individuals and to the Government through

direction and indirect taxation.

v. Enhanced loan recovery. vi. Reduction in risk exposure of the lending banks and enhanced profitability.81

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It should be noted that in 2006, CBN signed an MoU with the Cross River

State Government bringing the total number of signed MoUs and pledges under the model to seventeen. The bank also monitored the compliance of stakeholders under the jointly signed memorandum on the TFM in Katsina, Ondo and Benue State.82

In the study area, farmers were directed to form cooperative societies and apply in groups in order to have ground for accessing TFM loans. Many cooperative societies in Benue State were able to benefit from the scheme as at the time of this study. A sample of the beneficiaries is presented in table 4.12 below.

Table 4.12: List of Beneficiaries of Agric Loans under Benue Trust Fund Model (2010)

S/No Name of the Groups L.G.A. Amount Date of Repayment 1 Cassava Makurdi GP2 Makurdi 500,000.00 30.06.06 2 Fruits, Central GP1 Makurdi 500,000.00 30.06.06 3 Honey Bee Farmers Gwer-West 200,000.00 30.06.06 4 Groundnut Farmers Oju 360,000.00 30.06.06 5 Sorghum Farmers Obi 200,000.00 30.06.06 6 Sorghum Farmer Tarka 364,000.00 30.06.06 7 Cassava Agatu GP1 Agatu 320,000.00 30.06.06 8 Fruits, Mbaikyase Konshisha 200,000.00 30.06.06 9 Melon, Uvir-Lye GP1 Guma 200,000.00 30.06.06 10 Groundnut Farmers GP2 Oju 360,000.00 30.06.06 Source: CBN, Development Finance Office, 2016

Table 4.12 of this study shows that, cooperative societies in Benue State obtained ACGSF under the umbrella of TFM. The table further depicts that the least amount obtained by cooperatives under TFM was ₦ 200,000.00 while the highest amount loaned to cooperatives was ₦ 500, 000.00. Those cooperatives that obtained the highest amount were Cassava Makurdi GP2 and Fruits Central Makurdi

GP1respectuvely. Those cooperatives that benefited the lowest amount were Honey

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Bee Farmers Gwer-west, Soghum Farmers Obi, Fruits Mbaikyase and Melon Uvir-

Lye GP1. The table also shows that other cooperatives benefited more than ₦ 200,

000.00 but less than ₦ 500, 000.00. In this category, we have: Groundnut Farmers

Oju, Sorghum Farmers Tarka, Cassava Agatu Farmers GP1, and Groundnut Farmers

GP2, Oju. (For details of the beneficiaries see Appendix III). The beneficiaries used these loans for different types of farming activities (some participated in cassava farming, others in sorghum, groundnut, melon, and honey bees) thereby contributing to agricultural development in the area under review.

One thing that is certain to note is that in spite of importance of the TFM, the model was still beset with some challenges. Prominent among these challenges was inadequate public awareness. Lack of public awareness about the existence and usefulness of the TFM, as well as its potentials for catering for the welfare of farmers had prevented many potential applicants from benefiting from the fund.83

Another challenge is the unwillingness of some cooperatives to apply for loan from the fund; they misconstrue that banks are not agents of development. To further buttress this point, the Secretary of Lion 6-6 Multi-Purpose Co-operative Society

Limited, Wuese, B. Gaga stated that:

Since the inception of the association, only the United Nation’s International Children’s Emergency Fund (UNICEF) and Benue State Action Committee on Aids (BENSACA) supported us respectively to establish a school named Early Child Care Development and Education Centre (ECCEDEC) and gave a grant of N250, 000 to launch a campaign against HIV/AIDs in 2009. The orange orchard we have is through our personal efforts as cooperators. The Central Bank of Nigeria (CBN) and the World Bank (WB) did not in any way assist us in carrying out this projects.84

The above explanation is a graphic picture of the unwillingness of some co-operators to apply for the TFM loans in the state. Associated with the above challenges is the sporadic incidence of pests. Attacks by millibug on yam foliage and Lepidoptera and anomala tibialis on crops impeded the development of agriculture under this model.85 126

There was no new placement of fund under TFM in 2011. The total number of MoUs signed and the sum pledge under the model remained at 56 and N5.52 billion, respectively, as in 2010.

Table 4.13: Fund Placement under TFM at end-December, 2011

Type of Stakeholder AMT (N Billion) Number Remarks Multinationals/Oil 0.444 4 N5 million less due to Companies 2.438 35 suspension MISCAD SGs/LGAs 2.000 4 Fed. Govt. Agencies 0.634 13 Individuals/Organisations Total 5.516 56 N5 million less due to suspension of MISCAD Source: Central Bank of Nigeria Annual Report – 2011; National Bureau of Statistics (NBS)

Table 4.13 above indicates that, states and local governments have the highest contribution of 2.438 billion naira, followed by federal government agencies with a sum of 2.000 billion naira only. Individuals and organisations placed a fund of 0.634 billion naira only while multinationals and old companies contributed 0.444 billion naira, N5 million less because of the suspension of MISCAD. The total amount of money placed was 5.516 billion while the number of participants was 56 only.

The challenges encountered by the TFM cannot be discussed without mentioning flood. According to National Emergency Management Agency (NEMA), flooding has become an annual event resulting to loss and destruction of property worth millions of naira, Flooding has occurred in different parts of the State in 1996,

2000, 2005 and 2008.86 It also occurred in 2009, 2011 and 2012, affecting man in all dimensions including his farm(s). To add to the above position, a retiree who is also an Agri-businessman D. A. Unde said that:

127

I had a fish farm with a capacity of 12,000 – 15,000 fish which can be quantified in monetary value of 23 million naira, since each valued between N4,000 – N6,000, during the flood the whole farm was flooded because the whole house where the fish ponds were also situated, was water logged. I also lost my soyabeans and cassava farm to flood at BENCO near Abinsi in the vicinity of Makurdi metropolis.87

Another beneficiary of the loan facility, S. Dzapine explained the losses he incurred in

part:

The flood of 2009 was a total blow (loss) on me. I hired two hectares of Fadama with ₦6,000 each, I hired the services of labourers on the cost of N12, 000 and I purchased two bags of rice. When it was planted, the flood came and wiped off everything. After the flood, I could not get anything out of it.88

The above informants confessed that they lost their farms which they thought they

would get some money out of it and pay back the loan and utilise the profit for other

things. With the floods they had to look for money from other sources to fix the loan.

Circumstances like these, negatively affect the programme in question.

4.4.1.3 Interest Drawback Programme (IDP)

The Interest Drawback Programme (IDP) was introduced in 2003 by the FGN

and the CBN to assist borrowers under the ACGSF reduce their effective borrowing

rates without introducing dual interest rate regime or contradicting existing

deregulation policy of the government.89 Under the IDP, farmers borrowed from

lending banks at market-determined rates but the programme will provide interest

rebate of a determined percentage to them if the loans were repaid as and when due.

The interest is 10.0 per cent of the interest component of all loans fully repaid. The

IDP was established with a fund of N2.0 billion (Two billion Naira), named the IDP

fund.90 It was subscribed to by the FGN and the CBN, 60 percent and 40 per cent

respectively. It should be acknowledged that the IDP was part of the existing

authorised paid-up share capital of the ACGSF.91 The fund was invested in Nigerian

128

Treasury Bills (NTBs). Investment, income expected from this source was utilised in

setting interest drawback claims.

The fund was under the management of the CBN, which was also the

Managing Agent for the ACGSF. Administrative work and policies relating to the

IDP at the Head Office of the CBN are handled by the Development Finance

Department of the Bank headed by the Director of Development Finance.92 The

Development Finance Offices in the CBN Branches or currency centres in the states

where the loans were granted under the ACGS recommended qualified beneficiaries

of the IDP to the Head Office for consideration and approval.93 The procedure of

borrowing under the scheme is presented below:

i. Farmers shall borrow from the lending bank (that is the participating bank) at

market-determined rates and after the liquidation of the loan; they shall be

entitled to interest drawback at the predetermined IDP rate.

ii. All the applications for interest drawback shall be made by the lending banks

on behalf of their customers on the form prescribed for the purpose (Form

IDP/1). iii. Each lending bank shall prepare, in triplicate, the schedule (Form IDP/1) of all

eligible customers and forward the original and duplicate to the Head,

Development Finance Office of the CBN Branch/Currency (in this case

Makurdi – Benue State) centre in the state where the loan transaction took

place or the nearest CBN Branch/Currency Centre. The lending bank shall

return the triplicate. iv. Each schedule will reflect the particulars of customers from the specified bank

branch. The schedule will indicate the farmers’ names, ACGSF Guarantee

Certificate number, the loan amount, duration, interest paid, date of full

repayment, and the amount for which drawback is applied. Thus, for instance, 129

a farmer borrowing N100,000 at 30 per cent market rate for one year would

pay N30,000 as interest to the lending bank. However, supposing the IDP rate

at the time of borrowing was, say, 40 per cent, the farmer, on liquidating the

loan, shall be able to drawback N12,000. His or her effective borrowing rate

has, therefore, been reduced by 40 per cent.

v. The Head, Development Finance Office in the CBN/Currency Centre shall

examine the schedule as to the validity of the borrowers’ names, loan amount,

duration, and date of full repayment, interest charged and the interest

drawback entitlement. If found correct in all respects, he shall jointly sign the

schedule with the lending bank official before forwarding the original to the

Director, Development Finance Department at the CBN Head Office. vi. The Director shall ensure that the schedule is duly considered and if found

correct in all respects shall issue a check to the lending bank within 15 days

and advise the bank to credit the account of the customers with approved

interest drawback entitlement (amount). vii. Finally, the account of the beneficiary shall be credited by the lending bank

promptly in accordance with the relevant CBN guidelines on the number of

days for clearing cheques.94

The above is an indication that it pays to repay loans on the stipulated time.

Those who complied to the stipulated guidelines usually benefitted from the scheme.

In Benue State, the beneficiaries from this scheme included among others: T. Orbura,

Rev. M. Ayankaa, F. J. Akosu, M. Ityough, J. O. Bolaji, N. J. Atume, and D. M.

Agudu.95 According to an oral informant, I. Usoro (who is also the Head of

Development Finance Office where agric loans are processed):

Farmers find it difficult to repay back what they have borrowed. In most cases they complain of natural disasters, and to poor harvest, high cost of transport, lack of storage facilities and the like. In consequence 130

of all these factors, the Benue farmer had no option than to sell his produce on a giveaway price thereby, finding very difficult to repay back his loan.96

Many customers of the CBN IDP did not repay their money in time. In addition to the

said challenges is the long bureaucracy in the process of the drawback interest. R.

Tugba has revealed that:

Even though the interest from the IDP is one’s benefit or right, before the money is remitted into the beneficiaries account, it passes through series of stages; sometimes the intention of the beneficiary farmer is thwarted.97

In spite of these, reasonable progress has been made under the programme. As further

amplified in an edited volume by Mordi, Englama and Adebusuyi that since its

inception in 2003 to end – December, 2006, a total of 30,016 claims valued at N94.8

million had been settled.98 On yearly basis, the number of beneficiaries had been on a

steady increase. Starting with 774 claims value at N4.6 million in 2004, the number of

settled IDP claims increased to 14,020 (1171.4%) valued at 41.9 million (810.9%) in

2005,99 and further to 15,222 (8.6%) valued at N48.4 million (15.5%) in 2006.100

4.4.2 Rural Banking Scheme 1978

It is incontestable that informal rural financial markets existed in Benue and

Nigeria on the broader perspective before 1978. However, the imperfection and

inefficiency which characterised the services of these markets underscore the need for

formal rural financial market such as rural banking. Government believes that if the

market is left on its own, the flow of rural credit will be seriously jeopardised – hence

the governments’ intervention in formal rural financial markets.101

Prior to 1975, the CBN adopted moral persuasion by appealing to banks to

open branches in the rural areas to help particularly in agricultural development. This

was not heeded until a change of approach via section 4 of the Banking Decree of

1969 where banks were obliged to obtain prior approval of the CBN before they could

131 open a new branch. Here, banks were denied approval if their request to open more branches in the urban areas were not marched by proposals to open branches in rural areas simultaneously with or in advance of the new urban branches.102

However, those banks reneged on their undertakings hence it became obvious that no amount of persuasion would compel banks to establish branches in rural areas.

At the instance of the CBN, the Financial System Review Committee in 1975 recommended and the FGN approved a programme of geographical dispersal of banks branches particularly designed to ensure the penetration of rural areas by banks, a conscious and deliberate effort to direct banks into rural areas.103 According to T.

Philips; “this policy was designed to accelerate the modernisation and development of rural areas, the rural banking scheme is a means of influencing rural development in

Nigeria”.104 This philosophy of rural banking as explained by Philips did not change the situation much since most of the Participating Banks were situated in rural areas of Benue State.

In a rural banking survey conducted by the CBN in 1977, it disclosed that there were no banking facilities in many communities whose population ranged between 10,000 and 100,000 people.105 It was also discovered that after eighty four years of banking in Nigeria, by 1977, only 470 bank branches existed with an abnormal ratio of bank per person standing at 1/170,000.106 Thus, rural banking scheme was inaugurated in July 1977 with the decision to allocate the identified rural centres to banks on the basis of a formula which related to a number of each bank’s rural branches to its total branch network throughout the country.107 The specific objectives of the rural banking scheme were to: a. Mobilise rural savings for the issuance of credit to rural co-operators, farmers and

businessmen. b. Extend banking services and habits to rural areas. 132

c. Encourage increase in banking density of the country.

d. Enhance development of rural areas hence stem the alarming tide of rural-urban

migration.108

Arguably, the objectives of rural banking stated above indicated that rural

development through banking activities was the reason for the introduction. It should

be stated that majority of Nigerian population including Benue indigenes are rural

dwellers who commit to agriculture for the purposes of earning their living. In doing

this, in the 1990s, they participated in rural banking scheme under the platform of

Peoples’ Bank of Nigeria (PBN), Community Bank, which is now converted to

Microfinance Bank and Nigerian Agricultural Cooperative and Rural Development

Bank (NACRDB). To understand how these rural development banks enhanced

agricultural development in the State, the subsequent analysis is apt and timely.

4.4.2.1 Peoples’ Bank of Nigeria (PBN)

The Peoples’ Bank of Nigeria (PBN) commenced operation (on a pilot basis)

with an initial capital of N30 million. The first branch was commissioned by President

Ibrahim Babangida on 3rd October, 1989 in Ajegunle in Lagos State. The bank was

accorded legal status by Decree No.22 of 1990.109 The reason for setting up the PBN

stemmed from the realisation that low income earners normally lacked access to

institutional credit because they were unable to provide suitable collateral demanded

by banks before credit worthiness was ascertained.110 Relatively small credit needs

compared with large administrative charges on the part of banks made it

uneconomical to grant loans to this category of small borrowers. Specifically, the

PBN was set up to ameliorate the sufferings of the masses by providing them with

easy credit, curb mass unemployment at the grass root and encourage economic self-

reliance.111

133

This was further elaborated by S. E. Akiri that the scheme was aimed at proving the basic working capital required for petty trading, road side mechanics, farmers, artisans for the poor and other underprivileged Nigerians both in the rural and urban areas, who could not provide collateral security.112 The aim of providing the financial service to these group of customers was to enable them have access to financial capital in order that they will use the money to expand their already existing agribusiness or established new ones. The concerns were also to serve as a source for the creation of wealth and employment, goods and services. All these activities in turn influenced or paved the way for agricultural development.

The PBN granted loan facilities in the range of N50.00 and N5, 000.00. No interest was charged but an administrative fee was collected. No collateral was required, but to induce loan repayment, loans were usually granted on the basis of group membership of cooperatives, trade association, amongst others. A borrower was expected to be a member of a group of at least 15 persons. The repayment period was 50 weeks.113

Sources of funds to the PBN according to Decree No. 22 of 1990 include loans and grants from the FGN, funds from the CBN, low interest bearing loans from international financial organisations and funds from philanthropic organisations. The

1991 budget stated that a sum of N150 million would be set aside as equity base for the bank.114

It is on record that, as at the end of 1989, when the PBN had operated for only three months, the sum of N5.69 million was disbursed as short term loans to 8007 beneficiaries. Loans outstanding at the end of 1990 amounted to N74 million, while the number of borrowers totalled 79,066. The bank’s savings deposit facility at the end of 1990 had a balance of N9.8 million, while its branch network expanded from

26 in 1989 to 169 in 1990, located in all states of the Federation and Abuja.115 134

The bank under review made footprints in Benue State as it established branches in Makurdi, Gboko, Vandeikya, Ushongo, Zaki-Biam, and Otukpo, among others. These branches provided banking services which included receiving deposits from customers, encouraging savings, clearing cheques, payment of salaries and pensions to people on behalf of organisations and granting of loans.116 To have effective service delivery the aforementioned Peoples’ Bank Stations created programme offices within the local government areas which they covered. For example, in the former Gboko Council Area, PBN established branches at Wannune,

Buruku, Akpagher, Tyowanye, Gboko Central and Gboko East. The Makurdi Station on the other hand established offices at North Bank and Apir, the Zaki-Biam Station established programme offices at Katsina-Ala and Sankera, and the Vandeikya branch had the Tse-Mker and Ihugh programme offices, while Otukpo had programme offices in Ugbokolo.117The programme offices had programme officers who served as the link between customers and the branch offices.

The bank impacted positively on the economy and society of Benue State and beyond. The author’s fieldwork in 2016 revealed that people benefitted from the services of the bank under consideration in the state especially in the area of accessing loans, savings and deposits in which in most cases, they ended up using its for agricultural production.

To access loan from the PBN, clients needed to form themselves into groups.

A formed group was not mandatorily required to be registered formally. The basic requirement from a group was that it must be made of no less than or more than 20 persons.118 After a group was formed, it then applied for the facility with the bank.

The application was to be necessarily accompanied with the passport size photographs of the applicants including their names. In most cases, the group so formed carried the name of the activity which the group was engaged in. Subsequently, the following 135 groups among others emerged: Wannune Food Sellers Association, Gboko Yam

Sellers Association, Wannune Meat Sellers Association, Otukpo Food Vendors

Association, and Jukun Fishers Group, among others.119

An ex-accountant, the PBN, Gboko Branch (1989 and 1992), T. Tume, explains that once a group was able to meet the conditions to access loan which essentially was having 20 members evidenced by the passport photographs and names in application, no collateral was needed.120 The ex-accountant was more forthcoming when he explains that a group was oblidged to receive the maximum of N40, 000.00 only which invariably translated into N20, 000.00 only to a beneficiary. Tume continued that even when a group was qualified to receive N40, 000.00, the amount was awarded in two instalments. Under this arrangement, N20, 000.00 was awarded to 10 persons and the remaining 10 members waited until the first 10 beneficiaries completed their payments. Under this condition most often than not, the remaining 10 members of the group never benefitted as the first 10 people ended up not paying the money loaned out to them.121

Beneficiaries of the PBN loan scheme used the facility to expand or establish their farms, many informants attested to this. For example, A. Alough clearly illustrated this as he related:

The expansion of my orange orchard and yam farms were enhanced by the PBN loan facility of N2, 000.00. This went a long way in boosting my other agri-businesses; this was manifested in the level of income which accrued from the said businesses. The increase income placed me in a better position to provide enough food for my household and sell some in order to meet up with the family needs.122

Words such as the above demonstrate the level of agricultural development motivated by the CBN through financial institution or Participating Banks (PB) and in this case the PBN. Another oral informant from Otukpo axis of Benue State, S. Inalegwu affirmed that he secured a loan facility from PBN which he used to establish his

136 poultry business.123 According to him, he was one of the major suppliers of chickens and turkeys to weddings ceremonies and other social gatherings in Otukpo in the

1990s (before the collapsed of his business); the money he obtained was helpful to pay school fees for his children and also hire farm labourers.

In supporting the viability of the PBN, T.P. Agba showed that, people from different shades of life benefited from the bank’s loan facilities. He enumerated these people to include G. Origbo, in Daudu, Guma Local Government Area, who sold eggs; A. Vembe and U. Ikyur, both residents of Wannune, Tarkar Local Government

Area, who were a restaurateur and beef and pork vendor. A Adzer of Ushongo Local

Government, a citrus marketer; and A. Igbawua and A. Inuwa, Makurdi Local

Government Area, who were both traders in fabric materials.124

The preceding analysis is a clear indication that customers of bank under consideration were not restricted to farmers. As earlier stated, the PBN came into limelight during the quest for the CBN to develop the rural areas. This is one of the reasons to account for why many rural dwellers in the State benefited from it. The information gleaned from the above sources is a pointer to the fact that at least between three thousand to four thousand people in the study area might have benefited from the loan between 1989 and 1993. Since the programme was targeted at rural dwellers who were mostly farmers, many of them may have used the money for farming activities as already confirmed by some oral informants.

To demonstrate further that a lot of people benefited from People’s Bank Loan facilities under the CBN’s Rural Banking scheme attention will be paid to two areas of loan disbursement, namely; the sectoral disbursement of loans and advancies in

1991, and the summary of loan disbursement and repayment as at June 1991. These are contained in table 4.14 as below:

137

Table 4.14: Sectoral Disbursement of Loans and Advances as at June 1991 by the People’s Bank

Sectors Total No. of Amount Disbursed Pecent of Total Amount beneficiaris Disbursed Agriculture 13,813 11,596,538 15.0

Cottage industries 30,153 25,572,383 33.0

Petty Trade 9.208 7,731,025 10.0

Transportation 14,733 12,369,641 16,0

Manufacturing 12,893 10,823,435 14.0

Food Production 11,284 9,277,230 12.0

Total 92,084 77,310,252 100.0

Source: CBN Bullion, July/September, 1991, p.11.

Table 4.14 above shows the contribution of PBN, a CBN rural development programme to the development of different sectors of the Nigerian economy. The table shows that PBN was wholly based on the development of the agricultural sector since it contributed to the development of other sectors. In June 1991, the PBN disbursed the highest amount to cottage industries while transportation had the second share. Agriculture came before manufacturing, then food production while petty trade took the least share. Out of the aforementioned sectors, beneficiaries and amounts,

Benue State was equally included. See the summary of disbursement and repayment by the Nigerian states from the PNB in the next table.

Table 4.15: Summary of Loan Disbursement and Repayment as at June 1991

State Number of Total 15% Loan Percent of Beneficiaries Loans Service Repayment Repayment Disbursed Charge of Loan Akwa-Ibom 1,976 2,856,115 223,681 791,485 27.7 Anambra 3,961 3,848,010 301,363 2,613,968 67.9 Bauchi 1,695 1,292,650 101,235 2,162,550 167.3 Bendel 6,576 5,747,700 450,140 2,775,988 48.3 138

Benue 1,342 1,291,600 101,154 1,644,768 127.3 Borno 4,815 3,336,100 261,272 1,903,823 57.1 Cross- River 2,465 2,222,270 174,040 1.166,089 52.5 Gongola 4,792 3,338,300 261,444 2,368,097 70.9 Imo 2,445 2,638,100 206,607 1,834,853 69.6 Kaduna 5,592 5,312,850 416,084 N/A N/A Kano 6,079 4,098,690 320,995 1,955,185 47.7 Katsina 7,859 5,063,456 396,592 N/A Kwara 2,453 1,978,700 154,965 1,409,597 71.2 Lagos 9,479 9,703,610 759,953 6,761,140 69.7 Niger 2,038 1,401,850 109,788 1,087,960 77.6 Ogun 3,380 3,393,450 265,763 2,016,184 59.4 Ondo 6,794 5,930,150 464,429 2,918,815 49.2 Oyo 5,726 4,126,576 323,179 2,459,583 59.6 Plateau 2,562 1,940,850 152,008 2,214,827 114.1 Rivers 4,470 3,823,600 299,451 1,227,785 32.1 Sokoto 3,956 2,812,550 220,269 N/A N/A Abuja 1,629 1,152,475 90,258 685,611 59.5 Total 92,084 77,310,252 6,054,670 39,998,308 51.1 Source: CBN Bullion, July/September, 1991, p. 12.

From table 4.15 above, it is clear that though some states benefited more than

Benue State in terms of the number of beneficiaries and amount of the loan facility; the state under review also benefited. However, it cannot be denied that the state under consideration was among the least beneficiaries. The table also indicates that in

Benue State, as at June 1991, 1, 342 people benefited an amount of N 1, 291,600. This has attracted a service charge of 101,154 (that is 15%). The loan repayment was N 1,

644,768 while the percent of repayment was 127.3 exactly.

The large number of beneficiaries was as a result of soft or no collateral required by the PBN from the applicants before they accessed the facilities. Again, the interest rate charged by the bank was as low as 5 per cent and this motivated people to apply in thousands.125 In a way, the money which the people accessed from the bank aided them in one way or the other in solving their challenges, including those relating their agrarian life. Another area which the PBN impacted positively on the study area is through provision of employment opportunities. Some beneficiaries of the loan facilities used the funds to establish business (agri-business and others) that

139 provided employment opportunities for them and others.126 Their activities in a way promoted agricultural development in Benue State.

As interesting as the impact of the PBN on agricultural development in the state seems to be, the PBN faced some challenges which led to its failure and subsequent extinction. These challenges were revealed during field work to include corruption. Most often the bank staff fraudulently formed fictitious associations and collected loans in the name of such associations and in the process diverted the money for their own use. Also, cases abound numbering close to eighty persons who were loan beneficiaries and for whatever reason failed to completely pay back the loans they incurred from Gboko branch when their payment periods were over between

1900 and 1991.127

The argument above totally agrees with that of M. Faghbola who was the

Branch Manager of the PBN between 1989 and 1991 Gboko Branch. He explains that, officials of the said bank involved in official corruption by awarding loans to themselves and their family members and close associates without due process.128 He further asserted that since there was no collateral security required as a pre-condition for accessing such loans, such loans were not recovered and more worrisome, the money went to the wrong hands.129 To buttress further on how corruption ravaged the

PBN in the State and elsewhere in the country, S. E. Akiri said that:

The Peoples Bank of Nigeria became a siphoning pipe for the elitist group who suddenly turned the soft loans from the banks into personal income source… corruption, which remains the bane of our society, killed the Peoples Bank, which eventually fizzled out of existence.130

Situations like the one above are capable of hindering the effective development of rural sector including its agricultural aspect. This implies that the efforts of CBN to develop agriculture in Benue State encountered challenges thereby putting agriculture still on its rudimentary stage.

140

4.4.2.2 Community Bank (Microfinance Bank)

Community Bank in Nigeria is a self-sustaining financial institution owned

and managed by local communities such as community development associations,

town unions, co-operative societies, farmers groups and individuals to provide

financial services to their communities.131 It is also conceived as a self-sustaining

financial institution, owned and managed by a community or group of communities

and financial services at the grass root level.132

Community Banks provided credit mainly on the basis of self recognition and

credit worthiness in a community in contrast to the orthodox banking practice of

reliance on acceptable collaterals as an indication of credit worthiness. A minimum

equity share capital of N250, 000.00 was required and applications were received and

processed by the Community Bank Implementation Committee (CBIC).133 The scope

of functions of community banks included the following:

a. Accept various types of deposits including savings, time and target deposits from

individuals, groups and other organisations.

b. Issue redeemable debentures to interested parties to raise funds from members of

the public.

c. Receive money or collect proceeds of banking instruments on behalf of their

customers.

d. Provide ancillary banking services to their customers such as remittance of funds,

safe deposits facilities, et cetera.

e. Maintain and operate various types of account with or for other banks in Nigeria.

f. Invest surplus funds of the banks in suitable instruments including placing funds

with correspondent banks and in treasury bills.

g. Pay and receive interests as may be agreed upon between them and their clients in

accordance with existing guidelines. 141 h. Provide credit to their customers, especially small and medium scale enterprises

based on their areas of operation and promote and monitor effective loans usage

among them. i. Operate equipment leasing facilities and supervise credit schemes to ensure access

of their customers to farm inputs including financing inputs purchased on a

consignment basis, for groups of clients. j. Receive refinancing or other funds from the CBN and other sources, private or

public, on terms mutually acceptable to both provider of the funds and the

recipient community banks. k. Give guarantees in favour of their customers to enable them have greater access to

credit and other resources; and l. Perform non-banking functions that promote grassroots development such as

supporting individuals, cooperative and group formation activities, assisting

clients in marketing of agricultural, industrial and other products and providing

financial and other extension services to clients and other community members.134

The role of Community Banks in financing agriculture cannot be overemphasised due to the fact that they were closer to the peasant farmers or village level. The establishment and development of community banks was facilitated by the

CBN. This began with the inauguration of the National Board for Community Banks in 1990, charged with the responsibility of setting up Community Banks in the country.135 The objectives of the community banks were the same with that of the

PBN. The programme for the establishment of community banks took off when the first licensed community bank commenced operation in December 1990 in Alheri

Local Government Area of Kaduna State.136 From there, community banks gained wider acceptability and patronage.

142

In Benue State, many community banks were established between 1991 and

1993. These banks included Mbayion Community Bank, Gboko; Ipav Community

Bank, Ipav; Community Bank, Makurdi; Tyoshin Community Bank, Naka; Mbagen

Community bank, Abwa; Kunav Community Bank, Vandeikya; Community Bank,

Ukum; Iwarev Community Bank, Korinya; Okpoga Community bank, Ugwu Okpoga;

Onyagede-Adoka-Ugboju (now Apa Microfinance Bank) Apa; Otukpo Community

Bank (now Otukpo Microfinance Bank) Otukpo; Ugboju Community Bank (now

Ugboju Microfinance Bank) Ogobia-Ugboju Road; Tsiga Community Bank, and

Onege Community Bank.137

The aforementioned community banks provided services which positively touched the lives of rural dwellers in the state therefore accelerating productive activities leading to agricultural development. Commenting on the benefits of loan facilities from Community Banks, an oral informant notes that Community Banks

(CBs) provided a platform for rural people to benefit. He enumerated these benefits to include: provision of employment opportunities, access to rural finance; a situation that enabled the Benue farmers to save and to borrow to take care of their farm needs.138 He explained further that, in spite of these benefits, the CBs in Benue State and nationwide later collapsed because of poor monitoring team; hence some people allocated loans to names that did not even exist, this made repayment of such loans impossible.139

However, S. E. Nongo and S. O. Ajegi in their investigation into the causes of the collapse of CBs in Benue State argued that the issue of collapse of Community

Banks is an empirical one.140 The National Board for Community Banks (NBCB) carried out inspection report on all CBs to determine their financial standing – distressed or not distressed. The empirical data presented on the state of the banks which formed the basis for the revocation of the licences of the failed banks by the 143

National Board for CBs was derived from the inspection reports of the board, and it was analysed to determine the causes of their collapse.

According to Nongo and Ajegi, the NBCB reports have shown that Ukum

Community Bank began operations in January 1993. Several inspection reports were issued by NBCB. The last inspection report issued on May 1994 before the revocation of the licence of this bank by the NBCB revealed the following information: The staff strength stood at 14 with only the bank manager having previous banking experience.

This implies inadequate or poor quality of the management team of the bank.141 The bank generated earnings of ₦12,320 made up commission on turnover and interest charged on loans granted to customers. The total operating expenditure incurred was

N163, 274; this result into a loss of N150, 954. Total deposit mobilised stood at N538,

622.56.142

The reports showed that other community banks too suffered similar challenges. For example, Mbaterem Community Bank which commenced operations in March, 1994, had its licence revoked in September 1995. The management of the bank granted a total of N272, 498.22 as I.O.U to the Manager and N105, 218 as sundry debts to other staff of the bank. This implies a weak internal control system in the bank and a clear case of insider abuse.143 In fact, the bank generated N296, 378.93 as earnings throughout its period of operation while total expenditure stood at

N730,612.41 within the same period. The banks, therefore, incurred a loss of N524,

278.76. Ushongo and Gboko Community Banks had a weak manpower. For example, the Manager had NCE in Business Studies, the Accountant OND in Accounting and none of the staff had previous banking experience. Gboko Community Bank had 16 staff members and apart from the Manager ,none of them had a previous banking experience.

144

Besides these empirical causes or factors, U. M. Okpanachi identifies other challenges effecting Community Banks from the perspective of locational flows, inadequate capital, poor attitude of rural dwellers’ to formal banking services, and skilled manpower inadequacy.144 Issues such as the above are unhealthy for the smooth operation of CBs, therefore, paving way for their failure or collapse.

At this point of our analysis, the question that readily comes to mind is what are the effects of the collapse of community banks in Benue State? The reaction to the above poser is that, the collapse of community banks in Benue State has affected the economy of Benue and Nigeria at large in the following ways: i. Unattainment of the objectives of the CBs; as a result of the collapse of the

CBs, the banks could not act as catalyst for the rapid transformation and

development of the local areas. ii. Loss of deposits; the savings made by the rural savers in the CBs were wiped

out. The rural savers lost their deposits with the banks as deposits with the

CBs were not insured by the Nigerian Deposit Insurance Corporation. iii. Loss of confidence; the rural dwellers lost confidence in CBs in that deposit

mobilisation was difficult even for the profitable CBs. This is the spillage

effect of the collapse of the CBs. iv. Discourages banking habit; as a results of loss of deposit and confidence in

CBs, most rural savers were reluctant and indeed unwilling to deposit with the

CBs. v. Impairs general economic development; the collapse of the banks impairs

economic development, as the banks do not act as an effective intermediary

providing the necessary finance for economic development. The collapse act

as a disincentive to rural development through its negative impact on small

scale rural producers.145 145

The above challenges led to the classification of community banks as distressed. Distress connotes an unhealthy situation or the inability of a financial institution to achieve the set goals and aspirations. S. O. Alashi associates distress with a cessation of operations of a financial institution.146 Thus, the expression

‘financial distress,’ is commonly employed to describe two distinct, but closely related conditions in an enterprise. The two conditions are illiquidity and insolvency.

Illiquidity refers to a condition when a financial institution experiences a problem of cash flow. An illiquidity financial institution will suspend payment to depositors wishing to withdraw. Conversely, insolvency refers to a condition of a negative net worth of the balance sheet, with the sum of liabilities exceeding the sum of asserts.147

To shed more light on distressed and community banks, study table 4.16 below.

Table 4.16: Key Indicators of Community Banks

Year Liquidity Ratio Loans/Deposit Deposits N Growth Rate of Percent Ratios Percent Billion Deposits 1992 75.1 25.5 0.6 1993 74.0 32.5 2.2 242.1 1994 57.9 42.4 3.2 47 1995 55.7 42.6 2.8 -11.9 1996 47.8 53.1 2.8 1.5 1997 42.2 57.8 3.2 10.6 1998 49.8 60.1 4.4 10.6 1999 20.7 27.6 1.5 -66.1 Source: CBN Statistical Bulletin, 2000

Table 4.16 shows that, by 1993, 32 community banks were categorised as distressed. The number rose to 353 in 1997, reflecting a significant systematic distress in the sub-sector. The onset of distress among the community banks is gleaned from the deceleration of the liquidity ratio from 75.1 percent in 1992 to 20.7 per cent in

1999. This implied that the community banks experienced serious run on their deposits. The lending activities of most of the distressed institutions were bedevilled by insider abuse and credit extension without collateral. By end of December 1999, 146 the loan/deposit ratio of community banks increased sharply from 25.5 per cent in

1992 to 60.1 per cent in 1998.

For community banks to be more relevant or to be sustained in these circumstances, they have been converted into microfinance banks with a framework that is supposed to be adequately capitalised, appropriately regulated and supervised to address the need of financing at micro levels of the economy. However, this does not imply that community banks did not achieve anything.

Table 4.17: Sectoral Distribution of Loans and Advances by Community Banks in the year 2003 Sector Value of loans (N mil) Percentage Agriculture and Forestry 625.0 6.3 Mining and Quarrying 59.5 0.6 Manufacturing 809.2 8.1 Real Estates and Construction 574.1 5.7 Commerce 2733.1 27.5 Transportation/Communication 1727.9 17.4 Others 3,425.8 34.4 Total 9954.6 100 Source: Central Bank of Nigeria (2003), Annual Report and Statement of Accounts for the year ended 31st December, 2003, p.21.

Table 4.17 above shows the sectoral distribution of loans and advances by community banks in the year 2003. It shows that other sectors put together had

3,425.8 million which was the largest, while commerce maintained the second largest value with 2733.1 million naira. Transport and communication had third largest value of 1727.1 million naira, while the manufacturing sector had 809.2 as the fourth largest value. It should be noted that these figures cover the whole country including Benue

State. Agriculture and forestry took a share of 625.0 Million naira while mining and quarrying received 59.5 as the least value.

147

In December 2005, the CBN introduced a Microfinance Policy Framework to enhance the access of micro-entrepreneurs and low income households to finance services required to expand and modernise their operations in order to contribute to rapid economic growth. The rationale was that no inclusive growth can be achieved without improving access of this segment of the economic strata to factors of production, especially financial services.148

The above point has been stressed by Mordi, Englama and Adebusuyi, that the

National Microfinance Policy Framework for Nigeria was designed to enhance the provision of diversified microfinance services on long term basis for the productive poor and low income groups.149 The policy creates a platform for the establishment of microfinance banks (even though some existed before); improve the regulatory/supervisory authority’s functions of monetary stability and liquidity management; and provide appropriate machinery for tracking the activities of the operators in the microfinance sub-sector in Nigeria.150 The specific objectives of the policy are: a. Provision of timely, diversified, affordable and dependable financial services to

the economically active poor. b. Creation of employment opportunities and increasing the productivity and

household income of the active poor in the country, thereby enhancing their

standard of living. c. Provision of synergy and mainstreaming of the informal microfinance sub-sector

into the formal financial system. d. Enhancement of service delivery to Micro, Small and Medium Enterprises

(MSMEs). e. Mobilisation of savings for intermediation and rural transformation.

148 f. Promotion of linkage programmes between Microfinance Institution (MFIs),

Deposit Money Banks (DMB), Development Finance Institutions (DFIs), and

specialized funding institutions. g. Provision of dependable avenues for the administration of the microfinance

programmes of government and high network individuals on non-recourse basis;

and h. Promotion of a platform for microfinance service providers to network, exchange

views and share experiences.151

The above objectives cover rural development, productivity, and diversification of the economy which the issues of agricultural development are also included. To achieve these objectives, the CBN being one of the major stakeholders continues to oversee the operations of the National Microfinance Policy Consultative

Committee, and also issues license to microfinance bank indicating whether it is a

Unit, State or National Microfinance Bank.

It cannot be denied that there were microfinance banks in Benue State prior to the introduction of the CBN’s microfinance policy in 2005. However, most of these microfinance banks collapsed largely because of operational constraints but many of them still exist as at the time of this study. Those still in existence include Benue State

Microfinance Bank, Lapo Microfinance Bank, Excellent Microfinance Bank, et cetera.

Some of the aforementioned Microfinance banks like Lapo and Excellent

Microfinance Banks became instruments of agricultural development adopted by the

CBN in Benue State and elsewhere in the country because of the presence of their branches in other states. According to the Agric Credit Officer, LAPO Microfinance

Bank, Makurdi, S. Ukaibe, LAPO partner with the CBN Makurdi Branch to develop agriculture in the area under review.152 This they did under the platform of ACGSF 149 and the ABP. The CBN in trying to keep to its statutory duty of developing the

Nigerian economy (in this case Benue State) assisted borrowers to pay 40 percent interest rate of the money they borrowed from LAPO Microfinance Bank.

Some beneficiaries of loan facilities from LAPO include: Lafia Christopher (N

150, 000), Ani Laureta (N 100, 000), Alloe Moses (N100, 000), Abagen Nyianshima

(N 200,000), and Ayila A. Vitalis (N 100,000), among other beneficiaries.153 These customers used these facilities to engage in agricultural activities thereby enhancing of agricultural productivity in the state.

Relatedly, the General Manager, Excellent Microfinance Bank, Makurdi,

Abraham Olabede discloses that, the microfinance bank in tandem with the CBN,

Makurdi Branch, created footprints to the development of agriculture in Benue State.

He identifies the names and amount of the beneficiaries as thus: Joseph Apurugh,

Grace Ude, Dickson Ude, Veronica Bar, Mimi Aji, and Mike Abashi. The informant reveals that 1000 persons benefited from the CBN’s agricultural intervention scheme under the Excellent Microfinance, Makurdi. Each of them collected N177,600.00 only. The breakdown of the beneficiaries of this agribusiness loan was thus; 60 males and 40 females. However, other beneficiaries did not pay back the loan under the excuse that flood wiped away their crops.154 Olabede also agrees with Ukaibe that their customers admitted, there was astronomical increment in their harvest as a result of the loan facilities they obtained from Excellent Microfinance Bank, which enabled them to cultivate many hectares compared to what they were cultivating before. For example, Nomor Kpoughul of Mbaduku in Vandeikya Local Government Area and

Thomas Tion of Logo Local Government Area of Benue State that, used their loans judiciously and obtained ten and fifteen bags of rice respectively as compared to what they harvested in the period before accessing the loans. They expressed their happiness as a result of the improvement in their farm yield and financial strength.155 150

However, the above did not in any way imply that microfinance banks in

Benue State are free from challenges. Both Ukaibe and Olabede explained similar

challenges encountered by these institutions ranging from poor culture of loan

repayment, loaning without collaterals (making retrieval difficult), language barrier,

and robbery (example the LAPO Microfinance Bank Otukpo branch was robbed),

poor road network to link-up with the rural communities, et cetera.156

Besides, the National Microfinance Development Strategy expresses the

challenges bedeviling microfinance in Nigeria (Benue State inclusive) from the

dimension of low level of awareness, poor corperate governance, weak capital base,

incompetent management, inadequate supervisory structure, poor banking culture and

low-literacy level of the population, and loan default and fraud, amongst others.157 In

spite of all these challenges, microfinance banks in the study area were still up and

doing to facilitate agricultural development. See the statistics below.

Table 4.18: Statistics of the Microfinance Sector

Item 2011 2012 2013 2014 2015/1 Number of Licensed 873 879 820 913 958 MFBs Number of 474 566 820 679 684 Reporting MFBs Capital and 29,094.80 53,282.13 72,963.74 91,008.80 91,376.50 Reserves (Million Naira) Total Assets 117,872.10 222,766.59 270,896.14 300,731.10 343,883.10 (Million Naira) Deposit Liabilities 59,375.90 132,154.70 135,918.73 145,830.02 159,453.50 (Million Naira) Loans & Advances 50,928.30 96,971.56 129,026.97 162,904.99 173,673.00 (Net)(Million Naira) Investments 8,959.80 14,529.43 14,703.04 15,785.58 17,737.90

151

(Million Naira) Source: Central Bank of Nigeria, 2015 Annual Report, National Financial Inclusive Strategy, p.24.

Table 4.18 reflects that the number of licensed Microfinance Banks (MFBs) in

Nigeria had increased consistently except in the year 2013, when there was a decline.

In 2011 there were 873, 2012 there were 879 but rather decreased to 820 in 2013. In

2014, the number of MFBs stood at 913 while in 2015, the number had increased to

958. This is an indication that in spite of the challenges encountered, the MFBs had

operated and achieved in a way. Its loans and advances culminated to a sum of

173,673.00 Million Naira. It should be noted that it was this number of licensed

Microfinance Banks and the capital that the CBN had financed agricultural activities

in the study area and Nigeria at large

4.4.2.3 Nigerian Agricultural Cooperative and Rural Development Bank (NACRDB) (Bank of Agriculture-BOA)

The Nigerian Agricultural Cooperative and Rural Development Bank

(NACRDB) Limited was established on the 11th of October, 2000 as part of

government’s efforts to synchronise the duplicated activities of major public sector

based poverty alleviation agencies in the country. The initiative culminated in the

merger of the Nigerian Agricultural and Cooperative Bank (NACB) Limited, Peoples’

Bank of Nigeria (PBN) and the risk assets of the Family Economic Advancement

Programme (FEAP) to form the new Bank.158

Before the merger, all the three institutions pursued different financial

intermediation activities faithful to their respective establishing mandates.159

NACRDB (now BOA changed its name in 2010) was designed to provide both micro

and macro credit for agricultural activities. Specifically, micro credit is for non

agricultural activities in the ratio of 70 per cent micro credit and 30 per cent macro

152 credit of loanable funds. The ownership structure is thus: CBN 40 per cent and

Federal Ministry of Finance Incorporated 60 per cent. This Bank is under the supervision of CBN and Federal Ministry of Agriculture.160

One of the bank’s major objectives is the provision of commercial and developmental banking services in rural Nigeria at highly concessionary interest rates.

This is under two broad functions of NACRDB; that is, credit functions and development functions. Credit functions, on the one hand, incorporates direct lending to qualified loan applicants engaged in agricultural and non-agricultural small business; providing credit facilities to issuing organisations through on-lending services, and monitoring the flow of ground level rural credit.161 Developmental functions on the other hand covers to: i. Work with cooperative groups at the states and local government level to prepare

development action plans for themselves. ii. Enter into collaborative on lending MoU with states government and cooperative

associations and microfinance banks specifying their respective obligations to

improve the affairs of the groups and banks within stipulated timeframe. iii. Monitor implementation of development action plans of cooperative associations

and microfinance banks and fulfilment of obligations under MoUs. iv. Provide financial assistance to cooperatives and microfinance banks for

establishment of technical, monitoring and evaluation cells. v. Provide Organisation Development Intervention (ODI) through reputable training

institutes like Federal Cooperative Colleges, universities of agriculture, and

department of agriculture of various universities in Nigeria; and vi. Create awareness among the borrowers on ethics of repayment through local debts

collectors and cooperative marshals that enforce timely repayment and prompt

remittance of same to the lending institution.162 153

The bank’s primary role is grass root funds mobilisation and credit delivery.

Consequently, in 2002, the sum of N2.13 billion was approved for 26,942 clients out of a total of 28,422 applicants who applied for an estimated N290 billion. In 2003, the sum of N1.045 billion was approved disbursement to eligible customers in the first quarter of the year. As at end, July 2003, the total of N2.916 billion had been approved by the bank under study for disbursement to eligible customers. The bank’s grass roots deposit mobilisation effort had generated about 2.0 billion from small savers.163

Also worth noting is that, in the year 2004 alone, NACRDB provided N1.6 billion loan nationwide of which N693 million was for micro credit. Many cooperatives in Benue State benefited from the loan, namely: Lion 6-6 Multi-Purpose

Cooperative Society Wuese, Mbahiev Weavers and Artisan Cooperative Society,

Mbaninge and 9-9 Multi-Purpose Cooperative Society Ihugh, among others. Members of these cooperatives used their share for farm work especially tubers and grains farming while Lion 6-6 established an orange orchard for the cooperatives.

In the year 2005, the Federal Government of Nigeria through the CBN domiciled the sum of N50 billion with the NACRDB Limited to lend to cooperatives and other farmer organisations at concessionary interest rates.164 However, S.

Onyeagocha descries that, “a recent study of the patterns of disbursement of the 50 billion fund showed that more than 75 percent of the fund went to private farmers and other farmers organisations that are not cooperative societies”.165

In spite of this, some cooperatives in the study area notably, Igyuve Youth

Association; Igyo Livestock Cooperative Society; Ayaka Youth Association; and

Kasev Mbayion Cooperative Society have benefited from the CBN loan facilities.

Members of these association received 40,000 each, except Kasev Mbayion

Cooperative, which each member received 50,000. The disbursement of the loans 154 enhanced agricultural productivity. Expressing his feeling on this matter, A. Terver who has been a member of the Ayaka Youth Association for many years, explained that he was glad because he used his share of the loan to buy a motor cycle which in turn gave him many things including an orange orchard of about three hundred stands.166 Similarly, D. Iorgba, who is a member of Igyo Livestock Cooperative

Society has used her share of the loan facility to expand her poultry farm and improved her other businesses.167

From the foregoing, it is clear that the above informants contributed to the development of agriculture and improved on their wellbeing, since they supplied oranges and chickens to Terago Company Limited and wedding receptions respectively for money. Though records are scanty on the activities of NACRDB between 2006 and 2009 on Benue State, it should, however, be noted that the bank operated within that period and after. In 2010, A. Ocholi and M. Y. Amodu stated that NACRDB (now Bank of Agriculture, BOA), Makurdi Branch disbursed N 63 million to small scale farmers; in 2011, N 668 million was disbursed to small scale farmers,168 while between 2012 and 2016, the agricultural transactions of BOA were done as contained in the next table.

Table 4.19: Summary of Loan Disbursement and Repayment Report for the Period between 01/01/2012 and 31/12/2016 by BOA, Makurdi Branch

S/N Name of Amt. Cul Amt. Cumulative Default Client Approved Disbursed Repayment 1 Micro Agric 32,240,000.00 32,240,000.00 4,614,180.37 1,582,217.83

2 Micro N-agric 15,200,000.00 15,200,000.00 3,551,549.37 1,339,419.01

3 Agribusiness/ 30,000,000.00 28,761,283.00 2,390,058.72 2,517,506.99 SMEs 4 Mechanizatio 30,705,079.00 30,705,079.00 1,416,833.77 0.00 n

155

5 CBN ABP 381,897,378.9 221,828,090.1 N.A 3,773,313.02 0 0 Grand Total 506,392,457.90 340,268,452.28 11,972,622.17 9,212,456.86

Source: Office of the Credit Officer, BOA, Makurdi Branch Office, 20.06.2017

Table 4.19 reports that BOA, Makurdi had also participated in the CBN’s agricultural intervention schemes between 2012 and 2016. It approved the highest amount of 381,897,378.90 under the Anchor Borrowers Programme (ABP), while the sum of 221,828,090.10 was disbursed. There was no record of loan repayment under

ABP. This may be as a result of lack of time for the repayment. The money was not all disbursed; this can be attributed to unawareness by the target group or the inability of the clients to meet up the requirements. On the package of Agribusiness too, the facilities were not exhausted this may be as a result of the same reasons advanced above. However, the facilities of all other were all distursed. This may be as a result of the public awareness and meeting of the loans conditions.

As indicated by the foregoing table, clients obtained loans’ from BOA,

Makurdi Branch under different agricultural programmes of the CBN. These loans helped them to alleviate their plight of mobilising funds for agricultural productivity thereby enhancing agricultural activities in the study area.

In spite of the contribution of BOA to agricultural development in the state, the BOA faced critical challenges. One of these challenges was operational constraint, even though BOA has operated for decades, lacked internet banking facility. This constraint paved the way for suffering of many customers leading to business stagnation. Agreeing with this situation, an informant, T. Jime emphasised that, he started operating with the BOA more than ten years ago, when he opened an account with the Gboko Branch of the Bank, but with the closure of the said branch, customers were shared to move to Makurdi and Zaki-Biam branch respectively.169 He 156 was classified to belong to Zaki-Biam Branch, this was coincided with his decision to relocate from Gboko to Zaki-Biam settlement. He saved his finances there but he later relocated to Makurdi, the Makurdi Branch compelled him to open a fresh account with them hence they did not have their transactions details because of non-internet banking facility. According to him (Time) all the banks in the state have gone digital except BOA. This situation pushed many customers to close has account and disengage from the bank.170

The Manager BOA, Makurdi Branch and the Credit Officer, Mr. G. T. Asema and Mrs. J. Oko revealed in separate interviews that one of the critical challenges facing the bank is high default of loan repayment.171 Many clients collected the facilities and used them judiciously and obtained reasonable profit but lack the zeal of repayment. This drastically created a breach of trust. According to them, as at the time of this study loans were only being given to those who made their repayment as at when due. It should be noted that the breach of trust would affect many farmers because most of them would not be given credit facilities by the BOA again.

Also considered here is distance of the BOA from the clients. In her study of

Agri-credit and Rural Development, M.A. Eche brings to the fore that credit institutions in Benue State including BOA were located far away from the bulk of the farmers who live in rural areas.172 Most of them complained of the long processes involved in loan procurement, “come tomorrow, come tomorrow” is the normal statement of the bank officials. Looking at Eche’s arguments one cannot hesitate to agree with her and also state that, in most local government areas in the State, BOA did not have a branch in them, most of its branches are located in the urban areas where the target population is scanty thereby aggravating the plight of Benue farmers.

Illiteracy also constituted a pitfall to the operation of the BOA. This factor manifested itself in the course of clients filling their forms of membership of 157 registration and loan application. In the course of fieldwork to the BOA Makurdi banking hall, the author on more than six occasions saw the secretaries of different cooperatives correcting on the cancelled and mutilated forms of members. This is to enable them submit those forms with accurate information as demanded. Yet, in most cases, some information were altered making it difficult for the processors of agribusiness to understand some information needed for their remarks. According to

J. Oko, the Credit Officer, BOA Makurdi, some applications were put on hold because of the unclear request made by the applicants of agricultural loans.173

However, if they come and rectify the errors in time, they will stand a chance of benefiting from the facilities in question.

Corruption was also a major challenge. As stated elsewhere by Onyeagocha, agricultural loans in some cases were distributed to the untargeted group(s). This thwarted the purposes for disbursement of such facilities. Some informants complained that at times such credit facilities were diverted to politicians and other men of affluence who were not even part time farmers.174 A good number of the targeted group did not have access to those credit facilities, thus making them to experience financial challenges. This lowered agricultural productivity of some farmers in Benue State.

Though, BOA Makurdi Branch faced some critical challenges which stunted its healthy growth and operations during the period under review, it cannot in anyway, be denied that the bank contributed to the growth of agriculture in Benue State and elsewhere in the country. The table presented below shows the increase in agricultural growth.

158

Table 4.20: Agricultural Sector Inclusive Growth Factor

Year Agriculture Aemp Total GDP TP Tpercap Agpercap Scontr IGF 2002 190,133.40 15.31 433,203.51 122.40 3,539.24 12,422.05 3.51 2003 203,409.87 15.78 477,532.98 126.20 3,783.94 12,889.29 3.95 3.41 2004 216,208.47 16.24 527,576.04 129.90 4,061.40 13,310.06 3.89 3.28 2005 231,463.61 17.32 561,931.39 138.50 4,057.27 13,364.39 2.89 3.29 2006 248,598.96 17.56 595.821.61 140.40 4,243.74 14,159.52 3.05 3.34 2007 266,477.18 18.12 634,251.14 144.90 4,377.16 14,706.45 3.00 3.36 2008 283,175.43 18.71 672,202.55 149.60 4,493.33 15,137.02 2.80 3.37 2009 299,823.86 19.30 718,977.33 154.30 4,659.61 15,538.77 2.50 3.33 2010 317,281.65 19.92 776,332.21 159.30 4,873.40 15,927.42 2.40 3.27 2011 335,180.07 20.56 834,000.82 164.40 5,073.00 16,303.94 2.30 3.21 2012 348,490.80 21.05 888,892.99 168.30 5,281.60 16,558.60 1.60 3.14 4,403.97 14,574.32 2.84 3.32

Source: CBN Annual Report (various editions), NBS, p.50,

Table 4.20 shows that in a period of more than a decade, between 2002 and

2012 precisely; there was unflinching increment in agricultural sector inclusive

growth. In 2002, it was 190,133.40 and increased in years in between amounting to

the tune of 348,490.80 in 2012. This may be attributed to the efforts of the CBN and

other agricultural interventionist bodies. This growth led to the increase in the total

GDP of 433,203.51 in 2002 and 888,892.99 in 2012 respectively.

4.5 Conclusion

In this chapter, an attempt was made to provide the justification for the

establishment of Central Bank of Nigeria (CBN). In doing this, the chapter

acknowledged that banking in modern sense originated in England, which is usually

traced back to the coffee houses in London. The work discussed the emergence and

functions of the CBN. It is noted that agricultural development is in the ambit of the

development functions of the CBN. The chapter has identified and interrogated

CBN’s agricultural development intervention schemes ruminating on objectives and

159 their modus operandi as well as the challenges and the level of their achievements.

Here, attention was focused on the ACGSF (and its components: TFM, SHGS and

IDP) and rural banking scheme. Under rural banking scheme particular attention has been given to the PBN, Community banks, and NACRDB. The chapter noted that in spite of the challenges that hampered CBN in its quest for agricultural development, these CBN’s agricultural intervention programmes have created footprints on the economy and society of Benue State. The succeeding chapter discusses Commercial

Agricultural Credit Scheme and Anchor Brrowers’ Programme in Benue State.

160

Endnotes

1. S. R. Peters, and C. H. Sylvia, Bank Management and Financial Services. New York: MacGraw Hill Companies Inc. 2010, p.4.

2. S. R. Peters, and C. H. Sylvia, Bank Management and Financial Services… p.4.

3. S. R. Peters, and C. H. Sylvia, Bank Management and Financial Services… p.4.

4. T. O. Oyelami, “Banking Business and Central Bank’s Supervisory Role: A Case for Paradigm Shift, in Benue State University Journal of Private and Public Law (BSUJPP). Vol.1, Makurdi: SAP Ltd, 2013, P.56. Also Access http://www.historyworld.net/wrldhis/plainTesthistoryasp?historyid=Ac19- xzz1/q/clocuy. Accessed 2004. 2014.

5. http://www.historyworld.net/wrldhis/plainTesthistoryasp?historyid=Ac19- xzz1/q/clocuy.

6. T. O. Oyelami, “Banking Business and Central…p.51.

7. S. R. Peters, and C. H. Sylvia, Bank Management and Financial Services… p.4.

8. S. R. Peters, and C. H. Sylvia, Bank Management and Financial Services… p.4.

9. http://www.historyworld.net... Accessed on 20.04.2014.

10. T. T. Ityonzughul, V. D. Chia, and K. R. Iorakaa, “The Central Bank of Nigeria and Agricultural Development: A Historicisation”, in African Journal of Management, Social Science and Humanities, Vol.2, No.1, 2014, p.215.

11. C. V. Brown, The Nigeria Banking System. England: Longman, 1996, Pp.1-23.

12. R. A. Bannet, “A Banking Puzzle: Mixing Freedom and Protection”, in The New Times, February, 1984, p.4.

13. R. A. Bannet, “A Banking Puzzle: Mixing Freedom and Protection”… p.4.

14. F. Adekanye, The Elements of Banking in Nigeria with Questions and Answers. (Third Edition) Ibadan: F & A Publishers Ltd, 1986, p.141.

15. F. Adekanye, The Elements of Banking in Nigeria with Questions and Answers… p.141.

16. Research Department, CBN Briefs. Series No. 2006 – 2007/01, p.1.

17. J. L. Fisher, The Desirability and Practicability of Establishing a Central Bank of Nigeria as an Instrument for Promoting Economic Development of the Country. Lagos: Government Printer, 1956, p.17.

18. J. L. Fisher, The Desirability and Practicability… p.11.

161

19. F. Adekanye, The Elements of Banking in Nigeria with Questions and Answers… p.142.

20. http://www.cbn.gov.ng/AboutCBN/history.asp Accessed on 11.04.2017.

21. Research Department, CBN Briefs. Series No. 2006 – 2007/01, p.2.

22. Oral Interview with T. Bente, C.36, Banker, Makurdi, 20.02.2015.

23. http://www.cbn.gov.ng/AboutCBN/history.asp Accessed on 11.04.2017.

24. Research Department, CBN Briefs. 1997 Series, June 1997, p.4.

25. Research Department, The Changing Structure of the Nigerian Economy and Implications for Development. Lagos: Realm Communications Limited, 2000, p.122.

26. E. S. Ezekiel, The Elements of Banking: Money, Financial… p.107.

27. Research Department, The Changing Structure… p. 124. Also see Adekanye in his work that appears in note 14, Pp.164-165.

28. Research Department, CBN Briefs. Series No. 2006 – 2007/01, p.8.

29. Research Department, CBN Briefs. Series No. 2006 – 2007/01, p.10.

30. Research Department, CBN Briefs. Series No. 2006 – 2007/01, p.9.

31. Research Department, CBN Briefs. Series No. 2006 – 2007/01, p.9.

32. E. S. Ezekiel, The Elements of Banking: Money, Financial… p.95.

33. Research Department, CBN Briefs. Series No. 2012-2013 Edition, p.90.

34. Research Department, CBN Briefs. Series No. 2012-2013 Edition, p.90.

35. Research Department, CBN Briefs. Series No. 2012-2013 Edition, p.100.

36. G. O. Evbuomwan, “Financing Agri-Business in Nigeria: Challenges and Prospects”, in P. O. Okuneye & G. O. Evbuomwan (eds.) Proceedings of the African Farm Management Association (ATMA) on the theme: Agri-Business in the African Century. Ibadan: Daily Graphics Nigeria Ltd, 2004, Pp.290-291. Also see Research Development, CBN, Annual Report and Statement of Accounts, 2013, Part A (Financial), p.1. D. T. Normor, “Market Access and Agricultural Production of Yam Farmers in Benue State”. Ph.D, Department of Economics, Benue State University, Makurdi, 2015, p.74.

37. CBN, Development Finance Department (DFD) Agricultural Credit Guarantee Scheme Fund Guidelines. Abuja: CBN, 1990, p.2.

38. CBN, Development Finance Department, Agricultural Credit Guarantee… Pp.2-3. 162

39. CBN, Development Finance Department, Agricultural Credit Guarantee… p. 3.

40. Research Department, CBN, C. N. O. Mordi, A. Englama & B. S. Adebusuyi (eds.) The Changing Structure of the Nigerian Economy. (2nd Edition). Lagos: Atisele Vanessa Cards Co. 2010, Pp.125-126.

41. Oral Interview with A. Choko, C.50, Civil Servant/Farmer, Gbajimba, Guma LGA, 28.09.2016.

42. Oral Interview with F. Ajio, C.52, Civil Servant/Farmer, Katsina-Ala, Katsina-Ala LGA, 31.09.2016.

43. Oral Interview with G. Okewu, C.45, Civil Servant/Farmer, Oju, Oju LGA 30.09.2016.

44. Oral Interview with B. M. Vembeh, C.480, Civil Servant/Farmer, Wannune, Tarkar LGA, 31.09.2016.

45. G. O. Evbuomwan, “Financing Agri-Business… p.291.

46. G. O. Evbuomwan, “Financing Agri-Business… p.291.

47. G. O. Evbuomwan, “Financing Agri-Business… p.291.

48. G. O. Evbuomwan, “Financing Agriculture for Sustainable Economic Development”, in CBN Bullion (A CBN Publication) July – September, 2016, p.19.

49. Department of Development Finance (Development Finance Office) CBN, Makurdi Branch ACGFS, Loan Records of 2009 & 2010 Respectively.

50. E. A. Enenche, S. B. Ohen & G. E. Umeze, “The Effect of Agricultural Credit Guarantee Scheme Fund (ACGSF) on Production Efficiency of Rural Farmers in Benue State, Nigeria”, in Global Journal of Science Frontier Research, Vol.14 Issue 10 Version 1.0, USA: Global Journals Inc. Available at http://creativecommons.org/licenses/by-nc/3.0/. Accessed on 30.03.2017.

51. S. Usman, “The Central Bank of Nigeria, Rural Finance Policies and the Agricultural Credit Guarantee Fund”, in Africa Rural Finance Series Vol. 1. Nairobi: African Rural and Agricultural Credit Association, 2000, p.60.

52. Oral Interview with Solomon Ukaibe, C.35, Banker, High Level, Makurdi, 05.05.2017. This information was supported by another informant D. M. Adi, C.56, Mikap (Miva Rice), Makurdi, 28.04.2017.

53. Oral Interview with Solomon Ukaibe, C.35, Banker, High Level, Makurdi, 05.05.2017. This information was supported by another informant D. M. Adi, C.56, Mikap (Miva Rice), Makurdi, 28.04.2017.

54. Oral Interview with A. Isaiah, C.35, Banker, CBN Makurdi, 26.05.2017.

163

55. S. Usman, “The Central Bank… p.60.

56. O. Ayegba & D. I. Ikani, “An Impact Assessment of Agricultural Credit on Rural Farmers in Nigeria”, in Research Journal of Finance and Accounting. Vol.4, No.18, 2013, p.82. For the soft copy of this journal access http:www.iiste.org.

57. Oral Interview with Sani F. Mohammed, C.55, Banker, CBN Abuja, Headquarters, 17.05.2017.

58. S. Usman, “The Central Bank… p.59.

59. S. Usman, “The Central Bank… p.59.

60. O. E. Ucheagwu, “Financing Farmers Cooperative Societies under the Agricultural Credit Guarantee Scheme Fund (ACGSF): The Self Help Groups (SHGs) Linkage Option”, in CBN Bullion Vol.19, No.4, p.79.

61. E. E. Eyo, “Managing Self Help Groups (SHGs) Linkage Programme for Effective Savings Mobilization and Credit Delivery”, in CBN Bullion Vol.19, No. p.34.

62. A. S. Ngutsav & T. J. Akaahan, “Self Help Groups Linkages as Panacea for Declining Food Production in Benue State”, in P. Ogiji (ed.) The Food Basket Myths, Implications for Food Security and Agricultural Policy Reform in Nigeria: Essays in Honour of David Iornongo Ker. Makurdi: Aboki Publishers, 2004, p.26.

63. A. S. Ngutsav & T. J. Akaahan, “Self Help Groups… p.26.

64. A. S. Ngutsav & T. J. Akaahan, “Self Help Groups … p.27.

65. CBN, Department of Development Finance (Unpublished Loan Records).

66. Research Department, CBN, Various Issues of Annual Reports and Statements of Account. Abuja: CBN, 1999, p.121.

67. A. S. Ngutsav & T. J. Akaahan, “Self Help Groups… Pp.31-32.

68. A. S. Ngutsav & T. J. Akaahan, “Self Help Groups… p. 32.

69. O. E. Ucheagwu, “Financing Farmers Cooperative Societies… p.92.

70. Oral Interview with Sani F. Mohammed, C.55, Banker, CBN Abuja, Headquarters, 17.05.2017.

71. Oral Interview with M. Amase, C.38, Banker, Skye Bank, Makurdi, 04.05.2017.

72. Oral Interview with A. Anhieve, C.78, Kolanut Trader, Tsar-Mbaduku, 12.07.2016. Also see T. T. Ityonzughul, “A History of Co-operative Socieities in the Socio- Economic Development of Southern Tivland, 1960-2010”. M. A. Dissertation, Department of History, Benue State University, Makurdi, 2013, p.128. This is also expressed by A. Itser C.80, Farmer, Tsar-Mbaduku, 12.07.2016.

164

73. Oral Interview with J. Akighir, C.27, BOA, Makurdi, 24.04.2017.

74. Research Department, CBN Briefs. Series No. 2012-2013 Edition, Pp.92-93.

75. Research Department, CBN Briefs. Series No. 2012-2013 Edition, p. 93.

76. Research Department, CBN Briefs. Series No. 2012-2013 Edition, p. 93.

77. Research Department, CBN Briefs. Series No. 2012-2013 Edition, p. 93.

78. Research Department, CBN, C.N.O. Mordi, A. Englama & B. S. Adebusuyi (eds.) The Changing Structure… p.127.

79. Research Department, CBN, C.N.O. Mordi, A. Englama & B. S. Adebusuyi (eds.) The Changing Structure… p.128.

80. Oral Interview with I. Usoro, C.64, CBN, Makurdi, 24.04.2017.

81. Research Department, CBN, C.N.O. Mordi, A. Englama & B. S. Adebusuyi (eds.) The Changing Structure… p.129.

82. Research Department, CBN, C.N.O. Mordi, A. Englama & B. S. Adebusuyi (eds.) The Changing Structure… p.131.

83. Oral Interview with P. I. Tijah, C.72, Farm Manager, College of Agriculture, Yandev, 19.04.2017.

84. Oral Interview with B. Gaga C.56 cited in T. T. Ityonzughul, “A History of Co- operative Societies… p.127.

85. Oral Interview with D. Ikpato, C.45, Farmer, Ikyobo, Ukan 30.08.2016.

86. NEMA, “Rain Forecast Bad for Nigeria’s Socio-Economy” in Daily Trust Newspaper, May 19, 2011.

87. Oral Interview with D. A. Unde, C.15, Retired Civil Servant/Agribusinessman, Gyado Villa, Makurdi, 28.08.2016.

88. Oral Interview with S. Dzapine, C.37, Civil Servant, Vaatia College, Makurdi, 28.08.2016.

89. Research Department, CBN, C.N.O. Mordi, A. Englama & B. S. Adebusuyi (eds.) The Changing Structure… Pp.131-132.

90. http://www.cbn.gov.ng Accessed on 40.06.2017.

91. http://www.cbn.gov.ng Accessed on 40.06.2017.

92. Guidelines for the Interest Drawback Programme. This was obtained from the Development Finance Office, CBN Makurdi Branch. It was prepared by the Development Finance Department, Central Bank of Nigeria, Abuja, December, 2002. 165

93. Guidelines for the Interest Drawback Programme. This was obtained from the Development Finance Office, CBN Makurdi Branch. It was prepared by the Development Finance Department, Central Bank of Nigeria, Abuja, December, 2002.

94. Guidelines for the Interest Drawback Programme. This was obtained from the Development Finance Office, CBN Makurdi Branch. It was prepared by the Development Finance Department, Central Bank of Nigeria, Abuja, December, 2002.

95. Oral Interview with M. Ityough, C.58, Civil Servant/Farmer, Gyado Villa, Makurdi, 28.08.2016.

96. Oral Interview with I. Usoro, C.64, CBN, Makurdi, 24.04.2017.

97. Oral Interview with R. Tugba, C.40, Veretinery Doctor/Farmer, Apir, Makurdi, 29.08.2016.

98. Research Department, CBN, C.N.O. Mordi, A. Englama & B. S. Adebusuyi (eds.) The Changing Structure… p. 132.

99. Research Department, CBN, C.N.O. Mordi, A. Englama & B. S. Adebusuyi (eds.) The Changing Structure… p. 133.

100. ACGSF 2013 Annual Report and Audited Financial Statements. Keffi: Salman Press Nig. Limited, 2014, p.31.

101. A. Ocholi & Y. A. Amodu, “A Comparative Analysis of the Performance of Selected Rural Banks in Enhancing Agricultural Development in Benue State, Nigeria, 2010- 2012”, in TOSR Journal of Agriculture and Veterinary Sciences. Vol.4, Issue 5, 2013, p.16.

102. O. Olashore, “Rural Banking: Strategies and Policies of Government and Central bank of Nigeria”, in CBN Bullion, July, 1979, Pp.48-54.

103. A. Ocholi & Y. A. Amodu, “A Comparative Analysis… p.17.

104. T. Philips, “The Role of the Banking System in the Management of the Economy”, in CBN Bullion, Vol.15, No.2, April-June, 1991, p.16.

105. A. Ocholi & Y. A. Amodu, “A Comparative Analysis… p.17.

106. J. Yaron, “Sustainability Criteria in Rural Financial Institutions”, in World bank Economic Review Vol.6, 1992, Pp.250-260.

107. J. Yaron, “Sustainability Criteria in… p.255.

108. A. Ocholi & Y. A. Amodu, “A Comparative Analysis… p.17.

109. A. Ocholi & Y. A. Amodu, “A Comparative Analysis… p.12. This information is also available in S. C. Rapu, A. Sere-Ejembi, H. T. Sanni, J. A. Babatope, M. J. Hilili & J. Yakubu “Episode of Financial Sector Distress in Nigeria”, in O. J. Nnanna, A. 166

Englama & F. O. Odoko (eds.) Financial Markets in Nigeria. Abuja: CBN Research Department, 2004, p.101.

110. A. Ocholi & Y. A. Amodu, “A Comparative Analysis… p.12.

111. A. Ocholi & Y. A. Amodu, “A Comparative Analysis… p.12.

112. S. E. Akiri, “An Assessment of Poverty Alleviation Programmes in Nigeria”, in Journal of Economic and Management Studies. Vol.1, No.2, 2005-2006, Pp.65-66.

113. A. Ocholi & Y. A. Amodu, “A Comparative Analysis… p.12.

114. Central Bank of Nigeria, Annual Reports for 1991 and 1992.

115. A. Ocholi & Y. A. Amodu, “A Comparative Analysis… p.18.

116. Oral Interview with T. Tume, C.47, Former Accountant, PBN Gboko Branch, Wannue, Tarka, 22.12.2016.

117. Oral Interview with T. Tume, C.47, Former Accountant, PBN Gboko Branch, Wannue, Tarka, 22.12.2016.

118. T. P. Agba “A History of Poverty Reduction Programmes in Tivland, 1986-2010”. Ph.D Thesis, Department of History, Benue State University, Makurdi, 2014, Pp.210- 211.

119. T. P. Agba “A History of Poverty… Pp.210-211.

120. Oral Interview with T. Tume, C.47, Former Accountant, PBN Gboko Branch, Wannue, Tarka, 22.12.2016.

121. Oral Interview with A. Alough, C.78, Farmer/Businessman, Mbanor, Konshisha, 07.12.2016.

122. Oral Interview with S. Inalegwu, C.50, Businessman, Otukpo, Benue State, 10.05.2016.

123. T. P. Agba “A History of Poverty… Pp. 211-212.

124. Oral Interview with T. Awashima, C.55, Civil Servant, Adikpo, Benue State 04.03.2016.

125. Oral Interview with T. Tume, C.47, Former Accountant, PBN Gboko Branch, Wannue, Tarka, 22.12.2016.

126. Oral Interview with T. Tume, C.47, Former Accountant, PBN Gboko Branch, Wannue, Tarka, 22.12.2016.

127. Oral Interview with M. Fagbola, C.56, Former Branch Manager, PBN, Gboko, 03.05.2016. 167

128. Oral Interview with M. Fagbola, C.56, Former Branch Manager, PBN, Gboko, 03.05.2016.

129. S. E. Akiri, “An Assessment of Poverty… p.67.

130. I. M. Polycarp, A. J. Jirgi, & M. M. Dikwal, “The Role of Financial Institutions in the Financing of Agriculture in Nigeria”, in B. Okuneye & G. O. Evbuomwan (eds.), Proceedings of the African … p.242.

131. T. Philips, “The Role of the Banking… Pp.12-13.

132. T. Philips, “The Role of the Banking… p.13.

133. S. N. Ibeabuchi, I. S. Udom, M. K. Tule, A. S. Beda. & P. Ogbu “The Nigerian Money Market” in O. J. Nnanna, A. Englama & F. O. Odoko (eds.) Financial Markets in … Pp.52-53.

134. O. J. Nnanna cited in I. M. Polycarp, A. J. Jirgi, & M. M. Dikwal, “The Role of Financial Institutions… p.242.

135. O. J. Nnanna cited in I. M. Polycarp, A. J. Jirgi, & M. M. Dikwal, “The Role of Financial Institutions… p.242.

136. Oral Interview with A. Ierve, C.75, Retired, Civil Servant, Gbajimba, Guma LGA, 30.11.2016.

137. Oral Interview with A. Ande, Civil Servant (Ex-worker Iwarev CB), C.56, Korinya, Konshisha LGA, 16.06.2017, Oral Interview C. F. Mishin, C.50, Civil Servant, Korinya, Konshisha, LGA, 13.06.2017.

138. Oral Interview with A. Ande, Civil Servant (Ex-worker Iwarev CB), C.56, Korinya, Konshisha LGA, 16.06.2017, Oral Interview C. F. Mishin, C.50, Civil Servant, Korinya, Konshisha, LGA, 13.06.2017.

139. S. E. Nongo & S. O. Ajegi, “Community Banking in Nigeria: An Investigative Explanation of Collapsed Community banks in Benue State”, in Journal of Economics and Social Research. Vol.1, No.2, Makurdi: Aboki Publisher, 2002, Pp.87-88.

140. S. E. Nongo & S. O. Ajegi, “Community Banking in Nigeria… p. 88.

141. S. E. Nongo & S. O. Ajegi, “Community Banking in Nigeria… p. 88.

142. S. E. Nongo & S. O. Ajegi, “Community Banking in Nigeria… p. 88.

143. U. M. Ukpanachi, “Community Banks and Privosion of Rural Industrial Finance in Nigeria”, in Journal of Economics… Pp.6-8.

144. S. E. Nongo & S. O. Ajegi, “Community Banking in Nigeria… Pp.91-92.

168

145. S. O. Alashi quoted in S. C. Rapu, A. Sore Ejembi, H. T. Sanni, J. A. Babatope, M. J. Hilili & J. Yakubu, “Episodes of Financial Sector Distress in Nigeria”, in O. J. Nnanna, A. Englama & F. O. Odoko (eds.) Financial Market in Nigeria… Pp.102- 103.

146. S. O. Alashi, “Banking Failures Resolution: The Main Options”, in NDIC Quarterly Vol.3, No.2, 1993.

147. CBN, Microfinance Policy, Regulatory and Supervisory Framework for Nigeria. Abuja: CBN, 2011, p.8.

148. Research Department, CBN, C.N.O. Mordi, A. Englama & B. S. Adebusuyi (eds.) The Changing Structure… p.138.

149. Research Department, CBN, C.N.O. Mordi, A. Englama & B. S. Adebusuyi (eds.) The Changing Structure… p.138.

150. CBN, Microfinance Policy, Regulatory… p.16.

151. Oral Interview with S. Ukaibe, C.35, Agric Credit Officer, LABO Microfinance Bank, Makurdi, 05.05.2017.

152. This information was gotten from the Office of Agric Credit Officer, LABO Microfinance Bank, Makurdi on 05.05.2017.

153. Oral Interview with A. Olabede, C.56, General manager, Excellent Microfinance Bank, Makurdi, 11.06.2017.

154. Oral Interview with N. Kpoughul, C.46, Applicant/Farmer, High Level, Makurdi, Oral Interview, T. Tion, C.34, Applicant/Farmer, High Level, Makurdi, 11.06.2017.

155. This information that is the challenges of Microfinance Bank were expressed by informants whose names are contained in notes 164 and 167.

156. CBN, National Microfinance Development Strategy. Abuja: Sharpemann Ltd, 2012, Pp.19-20.

157. F. O. Odoko, I. Adamu, K. O. Dina, P. D. Golit & P. N. Omanukwue, “The Nigerian Capital Market”, in O. J. Nnanna, A. Englama, F. O. Odoko, Financial Markets in… p.94.

158. O. Nwankwo, “Agricultural Financing in Nigeria: An Empirical Study of Nigerian Agricultural Cooperative and Rural Development Bank (NACDB): 1990-2010”, in Journal of Management Research. Vol.5, No.2, 2013, p.31. Also Available at http://www.microthink.org/jmr. Accessed on 11.04.2017.

159. http://wrf.nigeriagovernance.org/organisations/views/1004. Accessed on 11.04/2017.

160. http://wrf.nigeriagovernance.org/organisations/views/1004. Accessed on 11.04/2017.

161. http://wrf.nigeriagovernance.org/organisations/views/1004. Accessed on 11.04/2017. 169

162. F. O. Odoko, I. Adamu, K. O. Dina, P. D. Golit & P. N. Omanukwue, “The Nigerian Capital… p.95.

163. T. T. Ityonzughul, “A History of Cooperative Societies… Pp.136-137.

164. Quoted in T. T. Ityonzughul, “A History of Cooperative Societies… Pp.136-137.

165. S. Onyeagocha cited in F. Agbo & S. Chidebelu, “Socio-Economic Determinants of Cooperative Access to the Services of NACRDB”. Field Actions Science Reports. Available at http://www.fact-reports.reveiws.org/index614.html. Retrieved 20.10.2013.

166. Oral Interview with A. Terver, C.40, Cyclist/Orange Dealer, Gboko, Benue State, 19.04.2017.

167. Oral Interview with D. Iorgba, C.38, Poultry Farmer, Gboko, Benue State, 19.04.2017.

168. A. Ocholi & M. Y. Amodu, “A Comparative Analysis… p.20.

169. Oral Interview with T. Time, C.60…

170. Oral Interview with T. Time, C.60…

171. Oral Interview with G. T. Asema, C.60, Banker…; Oral Interview with J. Oko, C.53, Banker, BOA Makurdi, 19.04.2017.

172. M. A. Eche, “The Role of Agric Credit on Rural Development: A Case Study of Livestock Enterprises in Three Local Government Areas of the State. PGD Project Report, Department of Agric Economics and Extension, University of Agriculture, Makurdi, 1999, p.78.

173. Oral Interview with J. Oko, C. 53,…

174. Oral Interview with J. Akighir…; Oral interview with A. Indyer, C.48, Farmer/Businessman, BOA, Makurdi, 26.04.2017; Oral interview with A. Bar, C.55, Farmer, BOA Makurdi, 20.06.2011.

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CHAPTER FIVE

COMMERCIAL AGRICULTURAL CREDIT SCHEME IN BENUE STATE, 2009 – 2015

5.1 Introduction

This chapter assesses the Commercial Agricultural Credit Scheme (CACS); it

notes that all of these programmes were introduced and partly subscribed by the

Central Bank of Nigeria (CBN) and the Federal Government of Nigeria (FGN) for the

purposes of developing agriculture in Nigeria including Benue State. The chapter

traces the origin and mode of operation, the importance as well as the challenges that

bedevilled the agricultural development programme under consideration. The chapter

found that CACS is meant for agro-allied industries and other large scale commercial

agriculture.

5.2 Agro-Allied Industries and Commercial Agricultural Credit Scheme (CACS)

Agro-allied industries depend on agriculture for their raw materials so as to

operate successfully in the production of finished goods that are useful to man and

animals. Agro-allied industries possess characteristics of both agriculture and

industry. However, there is a contradiction of whether to place these industries under

agricultural projects or industrial projects. In his reaction to this matter, J. E. James

submits that these industries are intersectoral and hence combine agriculture and

manufacturing.1 Agro-based industries in Nigeria can be categorized broadly into two.

First, there are large-scale agro-allied industries such as textile, brewery, flour, soap,

sugar, sawmill and plywood, leather and feed manufacturing industries which depend

to a large extent on primary agricultural commodities as major inputs.2 Secondly,

there are agro-allied industries which transform primary agricultural commodities into

preservable and marketable forms.3 In this group were rice milling, cassava

processing, grains and flour milling, cocoa processing and vegetable oil milling,

171 among others. Their objectives are to provide greater employment opportunities; and increase private sector participation in the manufacturing sector, and so froth.4

These industries benefited tremendously from the Central bank of Nigeria’s

(CBN’s) Commercial Agricultural Credit Scheme (CACS). The CBN, in collaboration with the Federal Government of Nigeria (FGN), represented by the

Federal Ministry of Agriculture and Rural Development (FMARD) established the

CACS for promoting commercial agricultural enterprises in Nigeria, which is part of the FGN Commercial Agriculture Development Programme (CADP).5 This fund compliments other special initiatives of the CBN in providing concessionary funding for agriculture such as the Agricultural Credit Guarantee Scheme (ACGS), which is mostly for small scale farmers, Interest Drawback Programme (IDP), Trust Fund

Model (TFM) and so forth.

The objectives of the scheme (CACS) include the following: i. To fast track development of the agricultural sector of the Nigerian economy

by providing credit facilities to commercial agricultural enterprises at a single

digit interest rate. ii. To enhance national food security by increasing food supply and affecting

lower agricultural products prices, thereby promoting low food inflation. iii. To reduce the cost of credit in agricultural production to enable farmers

exploit the potentials of the sector. iv. To increase output, generate employment, diversify the revenue base, increase

foreign exchange earnings and provide inputs for the industrial sector on a

sustainable basis.6

The borrowers under this scheme were both corporate and large scale commercial farms and agro-enterprises or medium scale commercial farms and agro- enterprises. Key agricultural commodities covered under the scheme were production 172

(cash crops, food crops, poultry, livestock, and aquaculture), processing, storage, farm

inputs supplies, and marketing.7 These industries were not operated in isolation to

agro-raw materials; and to operate in confidence, the business must be insured with

the National Agricultural Insurance Corporation (NAIC).

In Benue State, there were many agro-allied industries that benefited from the

CNB’s CACS, namely: Hule and Sons Nigeria Ltd (Oil Division Wannune), Teragro

Commodities Limited, Makurdi, and Mikap (Rice) Nigeria Limited all benefited

(obtained loan facilities) from the NACRDB and CACS. These industries in turn

motivated farmers by buying their produce at better prices. This in a way boosted

agricultural production as discussed under the following sub-themes.

5.2.1 Hule and Sons Nigeria Limited (Oil Division Wannune) 1996

Hule and Sons Nigeria Limited is the brainchild of Indyerkaa Hule, an

indigene of Mbakor clan in Tarka Local Government Area, Benue State. He has

secondary education. He is committed to improving the quality of lives of people

through his businesses.8

The company under review was incorporated on the 31st October, 1996 as a

Grain Merchant dealer in all kinds of agro-produce. Prior to 1996, the owner of the

company, Indyerkaa Hule had ventured into the business of grain merchandising since

1992. He had made steady progress by building partnership and understanding with

other participants in the business both within and outside Benue State. It was as a

result of the successes recorded in the first few years of grain merchandise that gave

impetus to the incorporation of the company as a Limited Liability Company in 1996.

Between 1992 and 2008, the company concentrated wholly on buying and selling of

grains across the nation.9 The company is manned by its proprietor, Indyerkaa Hule

who is the Chairman and Chief Executive Officer (CEO). The company has a Board

173 of Directors, for policy making. This is an indication that, at present the company is more of a family business.

According to the CEO, since 1992, he had engaged in the purchasing and selling of leguminous crops particularly soya beans, groundnut and to a lesser extent benniseed.10 In most cases, these grains were supplied to vegetable oil milling companies in Kano, Kaduna, Jos, Lagos and Oyo, amongst other places. This he did for many years and the business was expanded. Hule’s interactions with these companies prompted his establishment of his company.

As a tradition with good businessmen, Hule commissioned a feasibility study in 2007, in respect of his desirability for the establishment of the company in

Wannune, Tarka Local Government Area. The site was chosen because of two basic reasons, namely: Tarka is one of the largest producers of soyabeans and Wannune is strategically located on Makurdi - Gboko highway, this made the business premise to be easily accessable.11

A site was acquired at Wannune along Makurdi - Gboko Federal Highway.

The construction work commenced early in 2008. This was done in connection with the report of the feasibility study which revealed that, the agro-allied industry in that location could be a worthy venture. By May 2009, the construction work came to completion and production of the items was tested. In 2010, the company commenced a full fledge production, and since then the oil mill has continued to grow to higher heights.12 In support of this point, B. W. Yio shows that in 2010 the industry produced

5,300 tonnes of soyabeans, 2011, 6,700 tonnes, 2012, 7,000 tonnes, while 2013 it was

8,000+ tones of soyabeans.13 Between 2014 and 2016, the Administrative Manager of the company, D. Tyokighir noted that production had increased up to 1,500 tonnes yearly.14 In order to enhance high productivity, the CEO acquired his industrial

174

machineries from different countries. These machines are mounted in different

buildings at the Mill as shown below (figure 5.1):

Figure 5.1 Hule and Sons Nigeria Ltd (Oil Mill Division, Wannune) Source: Researcher’s Fieldwork 2016

Figure 5.2: A Processing Machine Procured from India in 2012 Hule and Sons Nigeria Limited (Oil Division, Wannune) Source: Researcher’s Fieldwork 2016

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Figure 5.3 Soya Meal (by-products) gathered in Sacks after Extraction of Oil at Hule and Sons Nigeria Limited (Oil Division, Wannune) Source: Researcher’s Fieldwork 2016

Figure 5.4 Farmers and Traders Exchange Articles of Trade for Money Hule and Sons Nigeria Limited (Oil Division, Wannune) Source: Researcher’s Fieldwork 2016

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Figure 5.5 The Two Generators that Supply Complex at the Power to the Oil Mill Hule and Sons Nigeria Limited (Oil Division, Wannune) Source: Researcher’s Fieldwork 2016

In order to acquire the above machines and achieve other needs of the

company regarding its productivity, in 2009, Hule and Sons Nigeria Limited accessed

agri-loan under the platform of the CBN, Commercial Agricultural Credit Scheme

(CACS). The amount the company secured as loan was 243,380,000.00. According to

the Company’s Accountant, S. Usaka, the company was able to procure this single

digit loan (CACS loan) because of the viable prospects the CBN saw in the

company.15 This scenario was vividly captured by D. Tyokighir thus:

After receiving the loan application, the CBN and the Participating Bank (in our case First Bank) studied the account performance of the company over the years and were impressed to grant the loan. They sent a team of personnel that visited the company and inspected the production processes and also saw how business activities were booming at the company’s premises. When they went back, they were confident enough that the company would be able to repay the loan if given. The Participating Bank under the auspices of the CBN collected collateral securities and company’s account was credited.16

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The representation above sheds some light that, for an industry to access CBN loan

under CACS platform, it must be viable profit wise, functional and ready with the

required collateral security. Without these, it will be impossible for an industry to

secure credit facility under the platform in question. Also worth noting is that,

statutorily, the CBN is mandated not to transact business with individuals, rather with

corporate bodies like organisations, companies, and institutions. This is what had

prompted the involvement of the Participating Banks in the CBN’s CACS

intervention programme.

The success of this company partly belongs to the CBN loan scheme (CACS)

and the availability of agro-raw materials. The commencement of work by the oil mill

brought to an end the direct purchase and sell of grains to the vegetable oil mill

companies and other grain merchants by Hule and Sons Nigeria Limited. What the

company did was to purchase grains (soya beans and groundnut) from farmers and

other grain merchants, process it into crude form and sell the crude to oil producing

companies across the country.17 The details of the company’s purchase since the time

it became operational are shown in the table 5.1 below:

Table 5.1: Grains Purchased by Hule and Sons Ltd (Oil Mill division), 2010-2015

Year Type of Grain Quantity Cumulative value (N)

2009/2010 Soyabeans 50,300,651 280,310,892.00

2010/2011 Soyabeans 5,514,026 337,598,777.60

2011/2012 Soyabeans 7,037,996 633,366,717.60

2012/2013 Soyabeans 6,008,281 420,148,708.28

2013/2014 Soyabeans 11,617,701 928,960,590.84

2014/2015 Soyabeans 14,592,145 1,452,555,543.00

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2009/2010 Groundnut 1,784, 772 1,051,152,835.00

2010/2011 Groundnut 1,936,012 225,652,762.00

2011/2012 Groundnut N/A N/A

2012/2013 Groundnut N/A N/A

2013/2014 Groundnut N/A N/A

2014/2015 Groundnut N/A N/A

Source: Adopted (Modified) from the General Manager’s Office, Hule and Sons Nigeria Limited, Wannune, February, 2018

Table 5.1 above illustrates that Hule and Sons Nigeria Limited purchased

grains especially soyabeans in large quantities. Since the commencement of the

purchase, the company has witnessed a steady growth in its purchasing power as well

as production. However, there was a slight fall in 2012/2013 but after that there was

no case of decrease in purchase. The table also shows that the more the quantity of

purchase, the more the value of Naira the company obtained.

In doing this, the soya cake, soya meal and groundnut cake that is collected

after the oil extraction are then sold to animal feeds producing companies. Hule

explained that his initial capital to diversify from grains merchandise to oil mill

production was N 150 million, the money was his personal savings from many years

of successful grain merchandise, not a loan facility from any of the CBN’s

agricultural intervention programme, nor any kind of loan facility from any bank.18

However, as stated elsewhere in this work, the company benefited from the CBN’s

CACS loan facility in 2009, that was when the company just commenced production.

With increase in production capacity and the presence of many agro-allied

companies outside Benue State, the company marketed most of its products to other

companies. The major vegetable oil mills that patronized the oil mill for its crude are,

Grand Cereal Nigeria Limited, Jos; JOF Farms, Owo-Akure; Owell Farms, Benin; and 179

E. M. Farms, Akure. Private individuals who patronized the company included Alhaji

Gum Sulum and Alhaji Muktar (both from Maiduguri, Borno State), among others.19

The company’s meal and cake on the other hand were sold to Animal Care

Service in Ogene, Ogun State; Livestock Feed in Aba, Abia State; Rainball Feed in

Sapele, Delta State; Obasanjo (Ota) Farms in Ogun State; Ambing Nigeria Limited,

Oyo State and many more. For crude and the soya meal or cake, the method of marketing is similar as some purchased at the company premises while the company also supplied to other companies when an order was placed for such. It is fundamental to note that all the products of Hule and Sons Nigeria Limited are in high demand nationwide and this partly explains what facilitated the steady growth of the company.20 This growth in production is clearly shown in table 5.2 below:

Table 5.2: Annual Production of Hule and Sons Ltd (Oil Mill Division) in Tones, 2010-2015

Year of Production Annual Production in Tonnes 2010 5,300

2011 6,700

2012 7,000

2013 8,000+

2014 9,300

2015 10,000

Source: Adopted (Modified) from B.W. Yio, “A History of Industral Development Initiatives in Benue State, 1976-2011”. Ph.D Thesis, Department of History, Benue State University, Makurdi, 2014, p.204.

Table 5.2 indicates that the production capacity in tonnes of Hule and Sons

Nigeria Limited in 2010 was 5,300 and this had increased to 6,700 in 2011. From

2012 to 2015, there was also a steady increment in tonnage. In 2012, the company

180 produced 7000 and in 2013 this had increased to 800 plus. The production capacity stood at 9,300, and 10000 in 2014 and 2015 respectively.

The central argument here is that the CBN empowered the company under consideration thereby paving the way to agricultural development in Benue State and by extension, Nigeria. There are evidences (both documentary and oral) in support of this argument. For example, Yio shows that, the coming into existence of Hule and

Sons Oil Mills has stabilized the price of Soya beans in the whole of Benue State.

However, prior to the establishment of the Wannune Oil Mills, Taraku Mills Limited championed the course of price stabilization, therefore, leading to agricultural development in the study area and elsewhere in the country. But now that the Taraku

Mill has been closed down, Hule Nigeria Limited becomes the leading oil mill in the state.21

E. I. Yecho shows that with the introduction of certain crops in the Tiv region of Benue State by the colonial masters; and much later the establishment of some agro-allied industries, many people including women engaged in the production and marketing of agricultural products. Some of these crops included soya beans, rice, yams, oranges, mangoes, and green vegetable and a host of others.22 Soya beans was one of the major crops that received the highest attention from women. Some sold their soya beans harvest at local markets close to them; others took their harvest and sold directly to Taraku Mills which paid them higher prices. This in turn enhanced high agricultural productivity among women.

An informant, G. Iorkyaan confirmed the above claim made by Yecho that, with the presence of agro-companies in the state such as Hule and Sons Nigeria

Limited, Ashi Rice, Miva Rice, Teragro Commodities, and others23 have been able to double their productive capacity because they now sold to these companies and

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acquired enough money to hire the services of labourers and also to obtain farm inputs

in good time.24

Denen Tofi, also at different points in time supplied soyabeans and groundnut

to Hule and Sons Nigeria Limited, the only active and better priced agro-company

closer to him. The money obtained from the sales of these raw materials was in turn

used to expand his Soya beans and groundnut farm (from 4 – 6 hectares and from 6 –

8 hectares) respectively.25

Prominent farmers in the host community of Hule and Sons Nigeria Limited,

Wannune, Mbakor, Tarka Local Government Area such as S. M. Atom, Zarki G.

Agee, T. J. Ushi, E. A. Hiev, T. Liamhange, H. Ijir, M. Terngu, I. Orshio, M. Yandev,

and E. Upaa all attested that Hule and Sons Nigeria Ltd and the CBN’s loans have

enhanced their productivity. All of the aforementioned informants explained that,

productivity had increased astronomically. This is to say that it doubled or even

tripled what they used to produce in the time preceding the establishment of this

company.26

The above is not an indication that Hule and Sons Nigeria Limited operated

within the period under study without some drawbacks. I. Hule identified these

challenges from the contexts of poor feeder roads to enable the company to reach out

to rural farmers in the inland markets in their localities and buy at the subsidized rate,

epileptic power supply, high cost of water, and double taxation, and many more.27

5.2.2 Teragro Commodities Limited, 2003

Teragro Commodities Limited is one among the many agro-companies located

in Adaka Village Makurdi, Benue State. It is a subsidiary of Transnational

Corporation of Nigeria Plc. Teragro is the new managers of Ben Fruits Nigeria

Limited, Makurdi. It was established by Benue Sate Government in 2003. The

industry adopted the name Terago Commodities Limited in May 2011 following the 182

transfer of ownership from the State Government to the new manager based on a

fifteen year lease agreement.28

It should be disclosed that the new managers took over before the company

began its production. Before the year of transfer, the company was already

abandoned, because of the disagreement that ensued between the Italians who were

technical partners and the State Government in the course of project execution. But

when the company was leased, it was the same partners who came and completed the

installation in the factory. By 1st March, 2012, the company started its operations and

on 9th March, 2012, the then President Goodluck Jonathan commissioned the

company.29 This agro-allied industry engaged in the processing of oranges, mango

and pineapple into juice concentrates which are used by the juice producing industries

for final packaging.

Figure 5.6 Fruit Juice Concentrate Processing Line at Teragro Commodities Limited, Industrial Layout, Makurdi Source: Researcher’s Fieldwork 2016

183

Figure 5.7 Teragro Fruit Juice Concentrates Prepared and Kept in Drums for Sell, Industrial Layout, Makurdi Source: Researcher’s Fieldwork 2016

The company was chaired by Mrs. A. Nwabuoku, who was supported by other

Board members. The Managing Director was Dr. J. Adejiji.30 The industry has the

annual capacity of 26,500 metric tonnes to produce orange, mango and pineapple

juice concentrates. The plant is among the first of its kind juice concentrate

production facility in Nigeria. The key factors driving Nigeria’s fruit juice market

include the upward mobile population, expanding middle class and ever increasing

health awareness. According to the United States Department of Agriculture, juice

consumption had increase in Nigeria from 200 million litres (2002) to 320 million

litres (2007) with the latter valued at about US $480 million. Over 95 per cent of this

juice that is consumed in Nigeria is made from imported concentrate.31

The objective of Teragro is to create value in agricultural raw materials by

using technology to develop, manufacture, distribute and market world-class

184 consumer goods for all markets.32 The Company’s products are designed to meet international standards, specifications and regulations which position them for competitiveness within Nigeria and global market. During the fieldwork, the Director of the company, Dr. Adejiji revealed that, the company had the staff strength of fifty person with the productive capacity to process five 911 trucks of oranges in 24 hours.33 The company’s products are patronised by all juice packaging industries such as the United African Company (UAC), DANSA Food Limited (owned by Dangote

Group), and Tito Dairies, among other companies.

The company obtained its raw materials especially oranges and mangoes

(apart from Hindi which is highly acidic, all types of mango are accepted) from Benue farmers and merchandise. But because of the scantiness of pineapple in Benue State,

Terago obtained its pineapple mostly from Edo and Cross River States.34 The purchase of these raw materials and other activities were made possible partly as a result of the CBN CACS loan (N52,000,000,000) Terago had accessed in 2012 when the company commenced production.35 It should be noted that the establishment and operation of Teragro gingered the establishment and expansion of citrus and mango orchards in the area under review.

With the establishment of Terago and California Fresh (located at Yandev, in the vicinity of Gboko urban area) some of the citrus farmers (captured in the

Appendix VI), like Kuma Cheren, Tyovenda Igber, Zenda Ikyaave, became suppliers of citrus to the company in question.36 Besides these citrus farmers, other citrus farmers too sold their produce or items to Terago.37 Notable among them were T.

Nenge, T. Takerada, J. Uhambe, M. Ine, S. Bari, Alhaji S. Mbakwe, A. Mohammmed and so on.38

With the purchasing of citrus and other fruits by Terago, many citrus farmers saw the benefit of selling their produce to the company under consideration, since the 185 company pays better prices. This has gone a long way in motivating farmers to expand their size of orchards (both citrus and mango). Contributing on the same issue about expansion of orchards in Benue State as an impetus from the Juice Company, J.

Uhambe has commented thus:

The establishment of Teragro Commodities Limited and California Fresh served as an eye-opener to me. Before these companies were established in our state, Benue, I had about three hundred stands of orange only. But when I know that these companies pay better prices and as such I expanded it to one thousand stands, not minding of the consequences of land shortage in our family.39

Although, Teragro and similar companies motivated the expansion of citrus in the study area; the expansion of citrus farms in turn aggravated the challenge of land shortage. Many farmers in the quest for money planted citrus to the neglect of food staples. An example of Uhambe in the preceding analysis is a case in point.

Aside citrus, Benue farmers have supplied mango to Teragro at better prices compared to open market prices. This in turn enabled them to expand their orange orchards and business respectively. Though mango is not planted much in the state compared to citrus, it still created a positive impact on the producers and dealers by increasing their financial strength. As logically affirmed by Angwe and Avav:

It was estimated that income from mango was 37 – 90 per cent of the incomes from other crops grown by households in Tiv speaking areas of Benue State. The survey indicated that incomes from mango were more than those generated by other crops grown by growers in Kwande, Tarkar and Gwer. Similarly, mango is listed among priority crops by the farmers in Kwande, Vandeikya, Buruku, Tarka and Gwer.40

Just like citrus, mango orchards and merchandising were in place in our study area before the establishment of Teragro and similar agro-allied industries. It is a fact that

Teragro and the industries of the like nature have given impetus to the expansion of orange orchards. Field Survey conducted in Buruku, Konshisha, Vandeikya and

Okpokwu Local Government Areas of Benue State have attested to this.41 The

186 informants consulted in this regard were D. Loho, O. Tiza, I. Ibyamegh, and S. Ajene respectively. Considering the expansion and development of citrus and mango orchards in the state, it cannot be denied that Terago Commodities Limited, one of the loanees of the CBN, CACS has enhanced agricultural development in the area of fruits in Benue State.

Going by the objective of the agro-allied industry under consideration, one could not hesitate to state without reservations that, the industry succeeded in adding value to agro-raw materials in the state, since farmers sold oranges to the company at better prices. To have fuller understanding of this comparative advantage see the evidences presented in the table hereunder:

Table 5.3: Prices of Oranges in Benue State, 2011-2015

Year Range of Prices in open Range of Prices Paid by Markets Terago 2011 1,500 – 2,000 N/A

2012 2,000 – 3,000 3,500

2013 2,500 – 3,000 3,000

2014 1,500 – 3,000 4,000

2015 1,000 – 2,500 3,000

Source: Production Manager’s Office Teragro, 2018; Benue State Orange Dealers,

Association, Orange Price List, 2018.

Table 5.3 above shows a comparative advantage between the prices of oranges sold in the open market with the ones bought by Teragro Commodities Limited. It clearly illustrates that between 2012 and 2015, the company under consideration paid higher than those who bought individually in the open market. Paying higher prices motivated farmers to sell to the company under consideration.

187

The company in turn manufactured and distributed juice concentrated to other

companies. In spite of the above, the company is beleaguered with many challenges.

These challenges spanned from scarcity of raw materials especially pineapple that

was ordered from outside the host state, insecurity of the business environment as a

result of the sporadic attacks by herders in Adaka village where the industry is

situated. Other issues are double taxation, erratic power supply, supply of unripe

citrus to the company, and many more. All these have hindered the company from

fully attaining its set goals thereby impeding the development of citrus and fruits

farming generally in the state. This has in a long run thwarted the objectives of the

CBN, CACS intervention programme in Benue State.

5.2.3 Mikap (Miva Rive) Nigeria Limited, 2011

The role of the CBN’s Commercial Agricultural Credit Scheme (CACS) in

Benue State will not be without Mikap, the company that produces Miva Rice. Just

like Teragro, Miva Rice is a private agro-allied industry owned by Chief Mike K.

Aondoakaa (SAN), the former Attorney General of the Federation and Minister of

Justice during Yar’Adua’s administration.

In 1982, Chief Aondoakaa was an undergraduate of the University of

Maiduguri. The he had conceived the idea of operating a rice milling company.42

When Aondoakaa was the Minister of the Federal Republic of Nigeria, he found out

that the only business the constitution permitted a government official of that status to

do was farming.43 He reinvigorated Mikap Nigeria Limited, a company he had

incorporated in 1990. Mikap was founded for the development of agricultural value

chain, energy, trading and development consulting.

The mission of the agro-allied company is to process quality Nigerian

parboiled rice at affordable rates, contribute to the rice value chain and create wealth

for the various stakeholders. Its vision is to become one of the leading rice production 188 companies on the African continent.44 Specifically, the company is aimed at promoting commercial agriculture, agro-processing and marketing.

In an interview, Mike K. Aondoakaa explained what led him to rice business.

This is as follow:

I ventured into rice production because it is an international staple food. It is a food item eaten everywhere on the continent. You talk of yam here, but it may not be eaten in America or Asia, but rice is eaten in all continents of the world. So that is why we said let us look at rice. Then Nigeria was spending N1 billion on importation of rice and so the idea was that if we are able to contribute at least 10 per cent of the rice consumed in Nigeria, we are not talking of export, out of 365 million, Benue will be going home with N36 million and that is quite a lot of money.45

Since 2011, Mikap has invested in polished parboiled and paddy rice processing, with a capacity of 8.5 tons per hour under the brand name ‘Miva Rice’.46 The industry is located at kilometre 5, Gboko Road, Makurdi, the Benue State Capital. The company received support from the Federal Ministry of Agriculture, especially the Minister of

Agriculture. Contributing on this matter, a source explains that, when we came into the business in 2011 he encouraged us because there were only four rice mills in the country then located in Umza in Kano, Aboni Agro in Ebonyi State, Miva Rice owned by Mikap Nigeria Limited and Ashi Rice in Benue State. But, the support we have received from the Minister of Agriculture especially is difficult to get now, because we are close to 24 local rice millers in the country competing in seeking such assistance. And recently, the big time rice players are also coming in. For instance, the

Dangote Group, Bua, Honeywell, Elephant Group have indicated interest and we in the local rice processing industry are happy because the moment these big time players invest in local rice production, we believe that we can also get protection that will stabilize the prices of local rice.47

Mikap has functionally engaged over 10,000 farmers in Benue and Cross

River States in diffusing the improved methods of paddy rice production. These were 189 made possible by working with the CBN and the Markets II Scheme of United States

Agency for International Development (USAID).48

The CBN factor in agricultural development under the platform of CACS in

Benue State so far, is mostly felt by Miva Rice more than any other agro-allied company in the State. The preceding analyses in this very chapter have shown that all the agro-allied industries in the State have benefited once from the CBN CACS except Mikap (Miva Rice) that benefited up to three times in this order. In 2011 the company accessed N26, 949, 8695, in 2014 was N 65,993,007, while in 2016 the company benefited N 33, 874, 660, 49 Also in 2016. The company accessed N

504,000,000 when summed together one would have N 630,817,536. The Manager

Administration, Miva Rice, D. M. Adi notes that the company benefited more than any other company in the state because of the size of the business and the ability of the company to repay back the loans on good time.50

Mikap’s initial investment in the rice value chain was the commissioning of

2.5 ton per hour (2.5 TPH) rice processing mill in the year 2011. The processing capacity of the plant was increased to 8.5 TPH in 2012 within two years of its operation. The mill applies state-of-the-art technologies and implements, international best practices of parboiled polished rice processing, packaging and marketing.

190

Figure 5.8 Rice being produced at the Mill, Mikap Nigeria Limited, Makurdi Source: Researcher’s Fieldwork 2016

Figure 5.9 The Rice Mill, Mikap Nigeria Limited, Makurdi Source: Researcher’s Fieldwork 2016

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Figure 5.10 Equipment at the Rice Mill, Mikap Nigeria Limited, Makurdi Source: Researcher’s Fieldwork 2016

Figure 5.11 Rice Ready for Supply, Mikap Nigeria Limited, Makurdi Source: Researcher’s Fieldwork 2016 192

What is being buttressed or projected, analytical and pictoral to the credit of

Miva Rice is a combined efforts of the CBN, Miva Rice and farmers. The CBN provided soft loans or single digit interest loans to Mikap (Miva Rice) which enabled the company to train farmers on new farming techniques. These farmers in turn produced and sold to Miva rice at better prices and this process enabled them to expand their farms. There are copious evidences to back-up this point.

According D. M. Adi, Miva Rice trained some farmers in the State under the auspices of the CBN. It also secured farm inputs for farmers in groups or in agricultural or farming cooperatives. The training farmers received coupled with the availability of inputs at their disposal led to agricultural development.51 When Miva started at the initial stage, the farmers output was low and at the end of the harvest they got 1.5 tonnes per hectare which was less than 30 bags of paddy or 15 bags of

100 kilograms. The company’s products have been raised to between 4 and 6 tonnes and one hectare is now giving a farmer between 40 to 50 bags. Farmers outside the country make about 14 tonnes per hectare through genetic modification, however, in those places land is an issue. For instance, in India, there is a law that no one can own land that is more than two hectares so the people’s concern in such places is how they can increase the yield.52

The target in training programme is to make sure that the farmers maximize their output. Miva Rice gave them improved seedlings it acquired directly from the

Seed Council. Every season the Minister of Agriculture sends some seeds to the company and it distributes to the farmers. To ensure that there is increment in productivity, the company trained farmers through its research units made up of some lecturers from the University of Agriculture, Makurdi and BNARDA. The issue here

193 is that the development of agriculture in the study area is incomparable to that of India and other countries because of biotechnology. However, there is an increase in agricultural output in Benue State including rice farming as exemplified by the preceding oral informants and documentations.

Similarly, I. Ekahinu of Makurdi, S. Mkeenem of Kwande, M. Kuanum of

Gboko, and S. Onuh of Okpokwu Local Government Areas in a group discussion emphasised that the partnership of the CBN, Miva Rice and USAID enabled them to increase their size of rice farms to a reasonable number of hectares. Specifically from

1 to 4 hectares each.53 The group disclosed that the CBN Anchor Borrowers’

Programme and USAID/Nigeria Market II provided training on modern farming methods and in addition gave them farm inputs without demanding for money.

Rather, they signed a MoU with Miva Rice stipulating the quantum of rice to be repaid to the company at the end of cropping season. In this regard, they were empowered and motivated to work harder. This has improved their wellbeing and agricultural productivity in the area under consideration.

Although Miva Rice recorded some achievements, the company is still bedevilled with multifarious challenges. Noticeable among these were: the inability of the company to get one specie of rice. A combination of different species of paddy by farmers creates considerable difficulties in parboiling process throwing up soaking temperature and overcooking challenges. Paddy supplies are also not thoroughly cleaned by farmers. Paddy usually contains large amount of chaff, dust and immature grains which generate Black Rice and overload the mill’s optical sorter.54

Other major challenges facing Miva are lack of mechanisation, and seasonal availability of paddy. The complete reliance on rain for cultivation and primitive planting methods in Benue State result in simple cropping per year by farmers.

194

Because paddy is only available for a short period of 90 days at harvest time once a year, this has imposed on the company the need for long period of stock-holding.55

Next is the breach of trust. Some farmers’ cooperatives signed MoU with

Miva Rice to collect inputs and repay in kind during rice harvesting season.

Unfortunately, after harvesting, some of these cooperatives refused to pay back as stipulated. Others hide under the umbrella of natural disasters and formally lodged complaints to the company. Some employ a means of dodging the agents of the company by changing their contacts (both residential house and phone number) in order not to be contacted.56

To add is the lack of technical-know-how; some farmers entered into an agreement with the company with the aim of keeping to tenets of the agreement but lack of knowledge had thwarted their intention.57 After attending workshops organised by Miva Rice in conjunction with the CBN on farming techniques, most of these farmers still lacked the technical knowhow. This led some to over or under apply chemicals on their rice farms. The outcome is that both weeds and rice withered and died. However, in situations where herbicides were under applied, weeds grew and took over the rice farms. This led to poor harvest, thereby compounding a challenge of loan repayment to the company.58

Due to the above and related challenges, it becomes clear that the vision of this company is that of being the leading rice processing industry in Africa; is yet to be realised. The chairman of the company has identified the leading rice companies in

Nigeria to include Dangote Group, Elephant Group, Bua, and Honeywell, 59 among others as contained elsewhere in this chapter.

Generally, an assessment of the CBN, CACS (a platform that provided credit facilities to agro-allied industries) in Benue State portrays that, the scheme contributed modestly to agricultural development in the study area. It had provided 195

loans to agro-allied industries in the State. Hule and Sons Nigeria Limited, Terago

Commodities Limited, and Mikap (Miva Rice), benefited from the scheme. This gave

impetus to the production in the aforementioned companies thereby leading to

agricultural development in the state hence farmers were motivated to cultivate on a

larger scale.

In spite of the above, the programme still witnessed some setbacks. This is an

implication that, its objectives are not fully achieved. For example, the provision of

food security is one of the objectives of CACS. But with the introduction of CACS in

Benue State the people of Benue and elsewhere in the country still complain of food

insecurity. With the emergence of CACS, the Benue State Government and Nigeria at

large still call for diversification of the economy. That is to say that, the objective of

diversifying the revenue base is yet to be attained. These and other challenging issues

depict that the objective of the programme under study is partially achieved.

5.3 Conclusion

From the preceding analysis, the CBN contributed to the development of

agriculture in Benue State in diverse ways. One of such ways is through its CACS.

This scheme provided credit facilities to agro-allied industries. Owners of these

industries obtained loans which they used for the expansion of their companies. For

the agro-allied companies to access CACS many prerequisites conditions were given

including insuring the company. This promoted the reviewed companies to register

with NAIC. This is done so that even in times of natural disasters, these companies

will be resuscitated or revived.

The chapter has emphasised that, the money loaned to the agro-allied

industries from the CBN CACS gave impetus to higher productivity. This is to say

that, this money in turn enhanced their productive capacity thereby paving the way for

agricultural development. The chapter disclosed that, in spite of the CBN’s credit 196 facilities, the beneficiary agro-allied industries still faced variegated challenges. These challenges cut-across poor power supply, lack of access to water, high cost of raw materials, poor management, et cetera. It is a truism that, these companies have positively touched the lives of Benue farmers who are also rural dwellers.

Apart from enhancing agricultural development, these companies created job opportunities and promoted the sales of local agro-raw materials. But just like any other CBN’s agricultural intervention programme, CAC and the participating companies were plagued with many challenges thereby hindering the full-fledged development of Benue agriculture. The next chapter treats the impact, challenges and prospects of CBN of Nigeria agricultural development interventions scheme in Benue

State.

197

Endnotes

1. A. E. James “Agro-Industrial Project Analysis – Critical Design Factor”, in World Bank Series. USA: John Hopkins University Press, 1992 (Page Unstated).

2. O. Ogungowora, “Food Security and Livelihood Improvement in Africa through Agribusiness Development”, in P. O. Okuneye & G. O. Evbuomwan (eds.) Proceedings of the African Farm Management Association on the Theme: Agric- Business in the African Century. Ibadan: Daily Graphics Nigeria Ltd. 2004, p.5.

3. O. Ogungowora, “Food Security and Livelihood Improvement in Africa through… p.5.

4. O. Ogungowora, “Food Security and Livelihood Improvement in Africa through… p.5.

5. Department of Development Finance, CBN, guidelines for Commercial Agriculture Credit Scheme (CACS), available at http://www.cbn.gov.ng. Accessed on 4.06.2017.

6. Department of Development Finance, CBN, guidelines for Commercial Agriculture Credit Scheme (CACS), available at http://www.cbn.gov.ng. Accessed on 4.06.2017.

7. http://www.cbngroupgovng.com/agric-credits. Accessed on 10.04/2017.

8. Oral Interview with D. Tyokighir, C.47, Industrialist, Wannune, Tarka LGA, Benue State, 28.06.2017.

9. Oral Interview with I. Hule, C.59, Industrialist, (Manager), Wannune, Tarka LGA, Benue State, 28.06.2017.

10. Oral Interview with I. Hule, C.59, Industrialist, (Manager), Wannune, Tarka LGA, Benue State, 28.06.2017.

11. Oral Interview with I. Hule, C.59, Industrialist, (Manager), Wannune, Tarka LGA, Benue State, 28.06.2017.

12. Oral Interview with I. Hule, C.59, Industrialist, (Manager), Wannune, Tarka LGA, Benue State, 28.06.2017.

13. B. W. Y. O. “A History of Industrial Development… p.204.

14. Oral Interview with D. Tyokighir, C.47, Industrialist, Wannune, Tarka LGA, Benue State, 28.06.2017.

15. Oral Interview with S. Usaka, C.53, Industrialist (Accountant), Wannune, Tarka LGA, Benue State, 28.06.2017.

16. Oral Interview with D. Tyokighir, C.47, Industrialist, Wannune, Tarka LGA, Benue State, 28.06.2017. 198

17. Oral Interview with S. Usaka, C.53, Industrialist (Accountant), Wannune, Tarka LGA, Benue State, 28.06.2017.

18. Oral Interview with I. Hule, C.59, Industrialist, (Manager), Wannune, Tarka LGA, Benue State, 28.06.2017.

19. Oral Interview with S. Usaka, C.53, Industrialist (Accountant), Wannune, Tarka LGA, Benue State, 28.06.2017.

20. Oral Interview with S. Usaka, C.53, Industrialist (Accountant), Wannune, Tarka LGA, Benue State, 28.06.2017.

21. B. W. Y. O. “A History of Industrial Development… p.204.

22. E. I. Yecho, “The Role of Women in the Socio-Economic Development of Korinya, 1850-2000”. M. A. Dissertation, Department of History, Benue State University, Makurdi, 2004, p.100.

23. Oral Interview with G. Iorkyaan, C.80, Farmer, Korinya-Gaav, Konshisha LGA, 16.06.2017.

24. Oral Interview with G. Iorkyaan, C.80, Farmer, Korinya-Gaav, Konshisha LGA, 16.06.2017.

25. Oral Interview with Denen Tofi, C.40, Lecturer, Gboko, Benue State, 09.09.2016.

26. Oral Interview with E. Upaa, C.53, Civil Servant/Farmer, Wannune, Tarka LGA, Benue State; Oral interview with H. Ijir, C.45, Farmer; Oral interview with M. Terngu, C.47, Farmer, Wannune, Tarka LGA, Benue State, 28.06.2017.

27. Oral Interview with I. Hule, C.59, Industrialist, (Manager), Wannune, Tarka LGA, Benue State, 28.06.2017.

28. B. W. Yio, “A History of Industrial Development… p.170.

29. B. W. Yio, “A History of Industrial Development… p.172.

30. Oral Interview with A. Nwabuoku, C.51, Industrialist/Chairman, Terago Commodities Limited, Adaka, Makurdi, Benue State, 20.06.2017.

31. United State Department of Agriculture, Nigeria Product Brief, Nigeria’s Fruit Juice Concentrate Market. Lagos: US Consulate, 2009, p.3.

32. Transcorp Digest, Issue 1, 2013, p.7.

33. Oral Interview with J. Adediji, C.48, Industrialist, Terago Commodities Limited, Adaka, Makurdi, Benue State, 20.06.2011.

34. Oral Interview with J. Adediji, C.48, Industrialist, Terago Commodities Limited, Adaka, Makurdi, Benue State, 20.06.2011. 199

35. This information was obtained from the CBN, Makurdi Branch, DFO, 30.05.2017.

36. J. A. Angwe & T. Avav, “Impact of Missionaries on Tiv and Benue Agriculture”, in T. Avav (ed.) Centenary of Christianity in Tivland: A synopsis of NKST Contribution to Evangelism in Tivland. (Town of Publication Unstated) 2011, p.156.

37. J. A. Angwe & T. Avav, “Impact of Missionaries on Tiv and Benue Agriculture… p.156.

38. Oral Interview with J. Adediji, C.48, Industrialist, Terago Commodities Limited,

39. Adaka, Makurdi, Benue State, 20.06.2011.

40. Oral Interview with J. Uhambe, C.48, Businessman/Farmer, Tarku, Gwer-East LGA, Benue State, 29.06.2017.

41. J. A. Angwe & T. Avav, “Impact of Missionaries on Tiv and Benue Agriculture… p.157.

42. Oral Interview with D. Loho; C.62, Civil Servant, Makurdi; Oral interview with O. Tiza, C.50, Mango Farmer, Tse-Tiza, Gaav. Oral interview with I. Ibyamegh, C.60, Mango Farmer, Tsambe & Oral interview with S. Agene, C.40, Fruits Dealer, Ugbokolo, 20.09.2015.

43. E. Mayah & I. Ibrahim, “How Aondoakaa’s Rice Business Attracted America’s Attention”, in Premium Times Newspaper, April 24, 2014. Available at http://www.premiumtimesng.com/business/business-interview/202329-michael- aondoakaas-rice-business-attracted-americas-attention.html. Accessed on 07.06.2017.

44. E. Mayah & I. Ibrahim, “How Aondoakaa’s Rice Business Attracted America’s…

45. Miva Rice, Office of the Manager Administration, 28.04.2017.

46. E. Uja, “Why I Ventured into Massive Rice Production – Aondoakaa”, in The Nation Newspaper, May 28, 2014. Available at http://thenationonlineng.net/why-i-ventured- into-massive-rice-production-aondoakaa. Accessed on 07.06.2017.

47. Miva Rice, Office of the Manager’s Administration, 28.04.2017.

48. H. Abah, “Miva Rice Generates Over N9bn Income Annually-Aondoakaa”, in Daily Trust Newspaper, May 28, 2017. Available at http://www.dailytrust.com.ng/daily/agriculture/51052-miva-rice-generates-over-n9bn- income-annually-aondoakaa. Accessed on 07.06.2017.

49. H. Abah, “Miva Rice Generates Over N9bn Income Annually-Aondoakaa”, in Daily Trust Newspaper…

50. Research Department, Central Bank of Nigeria, Abuja Headquarters; CBN Makurdi Branch Office, Development Finance Office (DFO), 30.05.2017.

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51. Oral Interview with D. M. Adi, C.56, Industrialist, Miva Rice, Makurdi, 28.04.2017.

52. Oral Interview with E. Omale, C.40, Civil Servant/Part-time Farmer, Makurdi, Benue State, 30.09.2016; Oral interview with A. Adamu, C.45, Civil Servant/Part-Time Farmer, Makurdi, Benue State, 30.09.2016. Oral interview with E. Pesa, C.38, Civil Servant/Farmer, Makurdi, Benue State, 30.09.2016.

53. H. Abah, “Miva Rice Generates Over N9bn Income Annually-Aondoakaa”, in Daily Trust Newspaper…

54. Oral Interview with I. Ekahinu, C.45, Civil Servant/Part-Time Farmer, Makurdi, 30.09.2016; S. Mkeenem, C.50, Civil Servant/Part-Time Farmer, Makurdi, 30.09.2016; Oral interview with M. Kuanum, 38, Civil Servant/Part-Time Farmer, Makurdi, 30.09/2016; S. Onuh, C.45, Civil Servant/Part-time Farmer, Makurdi, 30.09.2016.

55. E. Mayah & I. Ibrahim, “How Aondoakaa’s Rice Business Attracted America’s…

56. E. Mayah & I. Ibrahim, “How Aondoakaa’s Rice Business Attracted America’s…

57. Oral Interview with G. Riga, C.37, Industrialists…

58. Oral Interview with G. Riga, C.37, Industrialists…

59. Oral Interview with W. Ikyer, C.5, Farmer/Applicant, CBN, Makurdi, 29.08.2016; E. S. Okla, “The Roles and Activities of Ex-Servicemen in Idomaland, 1945-1999”. Ph.D Thesis, Department of History, Benue State University, Makurdi, 2015, Pp.153- 160.

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CHAPTER SIX

IMPACT, CHALLENGES AND PROSPECTS OF CENTRAL BANK OF NIGERIA AGRICULTURAL DEVELOPMENT INTERVENTION SCHEMES IN BENUE STATE 6.1 Introduction

This chapter of the study examines the impact of the Central Bank of Nigeria

(CBN) in agricultural development in Benue State. It uses statistical tools adopted

from the Federal Department of Rural Development and Benue State Agricultural and

Rural Development Authority (BNARDA). In doing this, the chapter discusses the

challenges, impact and prospects of the CBN’s agricultural development intervention

programmes in Benue State.

6.2 Impact of the Central Bank of Nigeria in Agricultural Development in Benue State As earlier stated in this work, the CBN is saddled with a statutory

responsibility to develop the Nigerian economy including that of Benue State. As the

bank strives to provide services to its clientele which will lead to agricultural

development, it created some impact on the economy and society of Benue State.

One of these inprints is the increase in agricultural productivity. It is on record

that since the CBN started sponsoring agricultural activities in Benue State, there has

been a reasonable increase in agricultural productivity and output. This increment can

be clearly understood by comparing the output of crops in the pre-CBN agricultural

development intervention programmes and the period of CBN agricultural

development intervention programmes as shown in table 6.1 below:

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Table 6.1: Comparism between Output of Crops in the last 10 Years in Tonnes in the Pre-CBN and the last 10 Years of CBN Agricultural Development Intervention Programmes in Benue State, 1967-1976

Pre-CBN Programmes Period of CBN Programmes Year Output Year Output Cassava Soya Rice Yam Ground Sorghum Cassava Soya Rice Yam Groundnuts Sorghum Beans nuts beans 1967 1186.49 56.56 45.82 958.11 119.42 63.96 2006 3559.48 169.68 137.49 2874.34 358.27 191.90 1968 1177.69 84.84 91.29 757.56 120.06 63.63 2007 3533.09 174.78 273.88 2572.21 360.20 192.94 1969 1205.50 59.92 96.57 967.91 123.06 63.81 2008 3616.51 179.76 289.72 2903.73 369.18 191.44 1970 1214.55 60.56 96.55 967.06 123.94 65.48 2009 3643.66 181.68 289.66 2902.80 371.82 196.46 1971 1205.75 69.29 97.74 976.20 126.80 64.78 2010 3617.27 207.89 293.22 2928.62 380.42 194.36 1972 1244.13 105.7 92.09 14,230 1613.2 98.42 2011 3732.41 211.45 184.18 28,461.52 3226.57 196.84 25 .76 8 1973 1883.87 1255. 48.95 10037. 1154.1 65.55 2012 3767.75 215.51 146.87 30111.45 3462.32 196.67 91 15 0 1974 1250.70 108.8 100.7 15090. 1744.6 69.15 2013 3752.12 217.75 201.15 3018.35 3489.36 207.45 7 2 67 5 1975 1946.96 112.1 143.1 1528.7 1770.6 103.72 2014 3893.64 224.34 286.35 30561.43 3541.30 216.11 7 7 1 3 1976 1328.17 128.0 2149. 15431. 1905.5 1154.96 2015 3984.51 206.14 299.45 30863.41 3811.03 230.92 7 72 70 1 Source: Adopted from Federal Department of Rural Development; Benue State Agricultural and Rural Development Authority, (BNARDA), 2015.

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Table 6.1 above compares agricultural output in the pre-CBN period and the

period of the CBN’s intervention. It is shows that there was agricultural development

in the study area prior to the advent of the CBN’s agricultural development

intervention schemes. However, with the introduction of CBN’s programmes, there

was a boost in crops output.

As earlier noted, the CBN was involved in different agricultural intervention

schemes to better the lot of farmers. Those farmers who applied and met up with the

requirements benefited from the loan facilities which they used for their agricultural

production. To this end, there was an increase in agricultural development in the

state. Mrs. M. Ityough and Mr. A. A. Aba on the one hand, confirmed that size of

their poultry farm have increased as a result of the loan facility they obtained under

ACGSF. It is reviewed that J. A. Ngoigo, A. Liamgee, P. Ejemeare, W. Ikyer on the

other hand attested, that they had bumper yam harvest seasons because of the

ACGSF1 (For the details of these credit facilities see Appendix II). There are

mounting evidences to support that, there is improvement in agricultural development

in the area under review. Statistically speaking, the tables presented below confirmed

this (also see Apendix V for more details of agricultural development in Benue State).

Table 6.2: Benue State Crop Production Data 2009-2011

S/No Crop name 2009/2010 2010 Total 2010/2011 2011 Total % % % Dry Wet 2010 Dry Wet 2011 Change Change Change Season Season Season Season Dry Wet Total Season Season 1 Root & Tubers Cassava 60.14 3661.48 3721.62 75.98 3691.77 3767.75 26.34 0.83 1.24 Yam 0.00 2954.41 2954.41 0.00 3011.45 3011.45 0.00 1.93 1.93 Cocoyam 0.00 23.06 23.06 0.00 22.00 22.00 0.00 -4.60 -4.60 Sweet 0.00 230.44 230.44 0.00 269.56 269.56 0.00 16.98 16.98 Potato Irish Potato 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2 Cereals Maize 8.54 167.40 175.94 9.58 165.80 175.38 12.18 -0.96 -0.32 Sorghum 0.00 199.65 199.65 0.00 196.67 196.67 0.00 -1.49 -1.49 204

Rice 14.50 312.77 327.27 17.62 329.25 246.87 21.52 5.27 5.99 Millet 0.00 66.15 66.15 0.00 67.61 67.61 9.00 2.21 2.21 Wheat 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Legumes Groundnut 2.99 411.60 414.59 4.49 457.83 462.32 50.17 11.23 11.51 Cowpea 0.00 27.61 27.61 0.00 26.00 26.00 0.00 -5.83 -5.83 Soyabean 0.00 196.60 196.60 0.00 215.51 215.51 0.00 9.62 9.62 Bambara 0.00 14.18 14.18 0.00 13.99 13.99 0.00 -1.34 -1.34 nut Beniseed 0.00 55.82 55.82 0.00 58.70 58.70 0.00 5.16 5.16

4 Others Cotton 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Melon 3.46 40.86 44.32 4.15 45.95 50.10 19.94 12.46 13.04 Onion 26.46 47.55 74.01 26.41 54.21 80.62 -0.19 14.01 8.93 Okra 94.20 68.28 162.48 102.54 75.00 177.54 8.85 9.84 9.27 Tomato 32.38 33.98 66.36 33.57 46.42 79.99 3.68 36.61 20.54 Pepper 14.71 17.59 32.30 16.15 24.65 40.80 9.79 40.14 26.32 Sugar cane 194.26 79.20 273.46 195.84 88.83 284.67 0.81 12.16 4.10 Ginger 0.00 5.69 5.69 0.00 5.69 5.69 0.00 0.00 0.00 Garden egg 41.88 62.32 104.20 45.46 73.55 119.01 8.55 18.02 14.21 Garlic 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Amarauthus 76.68 184.95 261.63 79.93 192.62 272.55 4.24 4.15 4.17

Source: Benue State Agricultural and Rural Development Authority (BNARDA), 2011

Statistics on crop production in Benue State are not available but the researcher got

the ones on 2009-2011 as presented above. In table 6.2, the output and production for tubers

recorded an increase in 2011 wet season compared to 2010 except for cocoyam (Colocasia

esculenta) which was on the decrease. As for cereals, maize (Zea Mays) and sorghum

(Sorghum bicolor) recorded marginal drop in output whereas rice (Oryza glaberrima) and

millet (Pennisetum glaucum) recorded increase in output during the wet season, 2011

compared to 2010. Legumes, groundnut ( Arachis hypogae), soyabeans (Glycine max), and

beniseed (Sesamum indicum) appreciated during the 2011 wet season compared to 2010.

However, the output for cowpea (Vigna ungiculata) and bambara nut (Vigna subterranean)

were on the decrease in 2011. Table 6.2 also shows that cotton (Gossypium hirsutum), garlic

(Allium satirum), wheat (Triticum spp) and Irish potato (Solanum tuberosum) were not

205

produced in the study area. The increase crops output in Benue was as a result of the effort of

the CBN and other stakeholders in agricultural production.

Table 6.3: Benue State Cultivated Area Data 2009- 2011

S/No Crop name 2009/2010 2010 Wet Total 2010/2011 2011 Wet Total % % % Dry Season 2010 Dry Season 2011 Change Change Change Season Season Dry Wet Total Season Season 1 Root & Tubers Cassava 6.20 275.30 281.50 5.80 279.44 284.24 -6.45 1.14 0.97 Yam 0.00 228.14 228.14 0.00 233.11 233.11 0.00 2.18 2.18 Cocoyam 0.00 2.20 2.20 0.00 2.16 2.16 0.00 -1.82 -1.82 Sweet 0.00 23.44 23.44 0.00 22.64 22.64 0.00 -3.41 -3.41 Potato Irish Potato 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2 Cereals Maize 6.28 108.70 114.98 6.26 110.53 116.79 -0.32 1.68 1.57 Sorghum 0.00 113.44 113.44 0.00 112.38 112.38 0.00 -0.93 -0.93 Rice 7.25 148.23 155.48 7.80 149.66 157.46 7.59 0.96 1.27 Millet 0.00 42.68 42.68 0.00 43.11 43.11 9.00 1.01 1.01 Wheat 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

3 Legumes Groundnut 1.66 205.80 207.46 2.14 206.23 208.37 28.92 0.21 0.44 Cowpea 0.00 32.11 32.11 0.00 32.00 32.00 0.00 -0.34 -0.34 Soyabean 0.00 93.62 93.62 0.00 95.36 95.36 0.00 1.86 1.86 Bambara 0.00 12.22 12.22 0.00 11.86 11.86 0.00 -2.95 -2.95 nut Beniseed 0.00 45.38 45.38 0.00 47.34 47.34 0.00 4.32 4.32

4 Others Cotton 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Melon 3.26 45.84 39.10 3.37 36.18 39.55 3.37 0.95 1.15 Onion 4.20 7.77 11.97 4.22 8.73 12.95 0.48 12.46 8.19 Okra 16.13 22.76 38.89 17.12 23.66 40.78 6.14 3.95 4.86 Tomato 5.69 10.62 16.30 5.90 11.24 17.14 3.87 5.84 5.15 Pepper 4.73 7.55 12.28 4.75 7.56 12.31 0.42 0.13 0.24 Sugar cane 15.26 7.34 22.60 15.30 7.44 22.74 0.26 1.36 0.62 Ginger 0.00 1.30 1.30 0.00 1.30 1.30 0.00 0.00 0.00 Garden egg 6.14 10.20 16.34 6.55 11.28 17.83 6.68 10.59 9.12 Garlic 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Amarauthus 8.53 19.76 28.29 8.66 20.47 29.13 1.52 3.59 2.97 Source: Benue State Agricultural and Rural Development Authority (BNARDA), 2011

There is an indication that statistic on Benue State cultivated areas for most years are

not available. However, the study in table 6.3 deals with results of the 2010/2011 Agricultural 206

Production Survey (APS). It shows that the area put to cultivation for rice, groundnut, melon, onion, okro, tomatoes, papper, sugarcane and garden eggs were of increase compared to

2009/2010 season as shown in table 6.3. This can be attributed to more awareness of the benefits derived from dry season farming by the farmers through the effort of the CBN and other agricultural development agencies. Area under cultivation during the 2011 wet season for cassava, yam, maize, rice, millet, groundnut, soyabeans, beniseed and tomatoes also show marginal increases compared to 2010 wet season as captured in table 6.3. This is an indication that there is development in productivity in Benue State.

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Table 6.4: Crop Man Yield (MT/HA)

2011 APS: CROP MEAN YIELD (MT/HA) – BENUE STATE MEAN YIELD (MT/HA) % CHANGE 2010 2011 S/NO CROP NAME DRY WET DRY WET DRY WET 1 Cassava 13.10 13.32 13.10 13.41 26.20 26.73 2 Yam - 12.95 - 13.00 - 25.95 3 Cocoyam - 10.40 - 10.40 - 20.80 4 Sweet Potato - 10.00 - 11.50 - 21.50 5 Irish Potato ------6 Maize 1.50 1.48 1.53 1.50 3.03 2.98 7 Sorghum - 1.74 - 1.75 - 3.49 8 Rice 2.30 2.11 2.36 2.20 4.66 4.31 9 Millet - 1.55 - 1.57 - 3.12 10 Wheat ------11 Groundnut 2.10 2.00 2.10 2.22 4.20 4.22 12 Cowpea - 0.86 - 0.84 - 1.70 13 Soyabean - 2.20 - 2.26 - 4.46 14 Bambara nut - 15 Beniseed - 1.22 - 1.24 - 2.46 16 Cotton ------17 Melon 1.20 1.14 1.23 1.27 2.43 2.41 18 Onion 6.26 6.10 6.26 6.21 12.52 12.31 19 Okra 5.96 2.14 5.99 3.17 11.95 5.31 20 Tomato 5.70 3.20 5.99 3.17 11.95 5.31 21 Pepper 3.11 2.33 3.40 3.26 6.51 5.59 22 Sugar cane 12.73 10.79 12.80 11.94 25.53 22.73 23 Ginger - 4.38 - 4.38 - 8.76 24 Garden egg 6.82 6.11 6.94 6.52 13.76 12.63 25 Garlic ------26 Amarauthus 8.99 9.36 9.23 9.41 18.22 18.77 Source: Benue State Agricultural and Rural Development Authority (BNARDA), 2011

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Even though, statistics on crop mean yield on Benue State are not available for other years, the researcher managed to get the ones of 2010-2011 as presented in tabular form.

Table 6.4, the mean yield of root crops like cassava, yam, and sweet potato increased marginally in 2011 compared to 2010. As for cereals, the mean yield of maize, sorghum, rice and millet all recorded slight increases in 2011 compared to 2010. Similarly, table 6.4 shows the mean yield of legumes were on the increase except that of cowpea which dropped by

2.33%. The increase in mean yield is attributed to the effort of the CBN and the favourable weather condition for crops and increase in input use in 2011.

Table 6.5: Benue State Fish Production Aquaculture 2010- 2011

S/No Fish Type or Name Total Qty Harvested Total Qty Harvested % Change (kg) in 2010 (kg) in 2011 1 Clarias 118,951,664.00 121,695,080.00 2.31 2 Heterotis 10,411,228.00 11,261,228.00 8.17 3 Tilapia 2,422,678.00 2,418,491.00 -0.17 4 Cat Fish 130,461,824.00 142,636,844.00 9.33 Source: Benue State Agricultural and Rural Development Authority (BNARDA), 2011

As it is applicable in many instances, research institutes fail to make statistics for the Benue State fish production aquaculture available. However, the researcher was able to obtain the ones in 2010 and 2011. Table 6.5 indicates that generally, fish captured in aquaculture increased in 2011 compared to 2010. However, there was a decrease in Tilapia which dropped from 2,422,678.00 to 2,418,491.00 (-0.17). The CBN has also enhanced the successful operation of agro-allied industries in Benue State. These agro-allied industries include: Hule and Sons (Oil Division Wannune), Terago Commodities Limited, Mikap (Miva

Rice) Makurdi, and others. Through the CBN, these companies obtained agric-loans under

Commercial Agricultural Credit Scheme (CACS) of the CBN. CACS was established in 2009 by the CBN in collaboration with the Federal Ministry of Agriculture and Rural Development

(FMA & RD) to finance large scale projects along the agricultural value chain-production,

209 processing, storage and marketing.2 The essence of the scheme was to promote commercial agriculture in Nigeria (Benue State inclusive). The scheme was administered at an all inclusive rate of 9.0 per cent with favourable tenor and and moratorium for each agricultural activity. From inception in 2009 to October 2015, the sum of N 318.145 billion had been released for 399 projects.2 This attracted a lot of beneficiaries nationwide. In Benue State, some agro-allied industries also benefited, see the table 6.6 below.

Table 6.6: Commercial Agriculture Credit Scheme (CACS) Projects in Benue State 2009-2015 Year Name of Project Amount (N) Address State Participating Bank 2009 Hule and Sons Ltd 243,380,000.00 48, Wannune BENUE FBN Main Market, Tarka LGA Gboko, Benue State 2011 Mikap Nigeria Ltd 269,498,695.00 Km 4 Gboko BENUE Diamond Rd Makurdi, Benue State 2012 Terago 2,000,000,000.00 Km 5, Naka BENUE UBA Commodities Ltd Road, Makurdi, Benue State 2014 Mikap Nigeria Ltd 65,993,007.00 Km 4 Gboko BENUE Diamond Road Makurdi, Benue State 2015 Mikap Nigeria Ltd 33,874,600.00 Km 4 Gboko BENUE Diamond Road Makurdi, Benue State

Source: Development Finance Department, CBN Abuja Headquarters, 2017

Table 6.6 of this study shows that between 2009 and 2016, six companies in Benue

State benefited from CBN’s Commercial Capital Agricultural Credit Scheme (CAPS).

Among these companies only Mikap (Miva Rice) benefited up to four times in the following order: in 2011 the company accessed N 269, 498, 695.00; in 2014 it was N 65,993,007.00. In

2016, the company also accessed N 33,874,600.00 and N 504, 000, 000.00 amounting to N

873, 366,302.00. The table further shows that Hule and Sons Limited benefited twice. In

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2009 it had accessed N 243,380,000.00. It further reflects that Terago Commodity Limited benefited only once but with the highest amount of N 2,000,000,000.00 that was in 2012.

According to the proprietor of the company under consideration, H. Indyerker the money derived from the CACS as indicated in table 6.6 above was used by the industrialists to secure machines, recruit staff members (both skilled and unskilled), and agro-raw materials.3 With the purchase of agro-raw materials, farmers in the state especially members of the host communities became confident that if they produced even in larger quantities agro-allied industries will buy their products at better price. As a result of this, farmers in the

State intensified their productive efforts thereby enhancing agricultural development.

Commenting on the purchasing power and reduction of poor prices by the agro-allied industries in the state, a member of Soya beans Association, N. Alaade argues that, “the coming into limelight of Hule and Sons Oil Mills has actually improved the price of Soya beans in Benue State”.4 Before the industry came into being, there was no other industry in

Benue State that was purchasing soya beans in large quantity apart from Taraku Mills

Limited (TML) but the TML has closed down. Alaade emphasized that at present, agro-allied industries in the State motivated farmers. They always pay better prices compared to that of other buyers. He noted that in December 2013 when soya beans over flooded the market, others were buying individually at the cost of N4,000 and N5,000 per bag while Hule and

Sons Limited gladly bought 100 kilogram for N7,500.5

The multiplier effect of agro-allied industries on the economy of Soya beans, groundnut, beniseed, mango, oranges, and rice producing areas in the state has been greatly enhanced. Farmers were happier to produce as they solved their problems and that of their household with the good money they earned from their sales of grains whose prices were better as the result of the emergence of agro-companies in the area under review. Other companies also came outside the state and purchased to obtained raw materials and as such this sparked off competition and the prices of grains especially Soya beans had remained 211 competitively better for farmers.6 This actually motivated grains farmers to produce in larger quantities leading to agricultural development in the area of grains and other crops in the

State. These increase in the yield of grains was very much especially in the year 2010-2011 as shown in the table in the next page.

Table 6.7: Growth in Major Production (per cent) in Benue State

Crop 2010 2011 Crop 2010 2011 Wheat NA NA Plantain 3.3 4.3 Sorghum 2.0 3.2 Potatoes 3.5 4.6 Rice 2.0 3.0 Yam 2.5 3.2 Maize 3.7 4.3 Cassava 4.7 4.0 Millet 2.7 3.0 Rubber NA NA Soya-Bean 6.2 6.4 Palm Oil 6.1 7.5 Beans 4.0 4.3 Cocoa NA NA Source: Central Bank of Nigeria Annual Report, 2011, p.129.

Table 6.7 displays that output of crops (both stapples and cash) had increased steadily between 2010 and 2011, except for the cassava which had decreased from 6.9 per cent to 6.0 per cent.

More so, the CBN motivated the emergence of some agricultural cooperative societies in the study area. This was done in order to enable them access agricultural credit facilities in group. However, it should be noted that there were cooperative societies in Benue State and

Nigeria on the broader perspective prior to the intervention of the CBN in agricultural development. This has been acknowledged by some authorities like C. E. Strictland, D. W.

Adams, M.D. Adeyeye, S. A. Amehalu, J. D. Anderson, A. N. Aniodah, M. O. Ijere, F. Iyoha,

E. Onwuka, F. Onuoha and A. F. Idyorough. In fact, Idyorough demonstrates that there were

278 cooperatives in Northern Province and by 1960; there were 900 in the North. In Benue

Province there were 59 cooperative societies with a total membership of 3,868.7

However, it cannot be denied that agricultural cooperative societies have sprung out in Benue State as a result of the effort of CBN to develop agriculture. As earlier stated in this 212 work, CBN established Rural Banking Scheme and Trust Fund Model, among others, and encouraged farmers to form cooperatives in order to benefit from its credit facilities. In this respect, many cooperatives came on board in the study area (confirm this on Appendix III).

These cooperatives served as agents of agricultural and socio-economic development in the

State and Nigeria as a whole. This is because the money their members obtained and used for agricultural productivity enabled them acquire high yields. This went along way in uplifting their standard of living, sending their wards to school and settling medical bills, et cetera.

The CBN gave impetus to the sustainability of the Nigerian Insurance Corporation

(NAIC).8 In the quest for agricultural development, the CBN had engaged the NAIC. Before one would acquire a huge loan from the CBN, one must show the evidence of insuring his or her business, before the CBN considered the application as a valid one. When a farmer or an industrialist encountered natural disaster, the insurer was ready to resuscitate him in order to continue with his business. In the course of doing this, the CBN and the participating financial institutions, the insured, as well as the NAIC benefited from it. In this agreement, the NAIC business continues to boom as many people registered with its both in monetary and in documentation form.

In addition to the above, the CBN through its instruments and other stakeholders in agricultural development contributed successfully to making Benue Agriculture to have an edge over other states of the Federation. This to some extent justifies why Benue State earned the appellation “Food Basket of the Nation”. P. Ogiji shows that, the concept of “Food Basket became more popular when the Federal Road Safety Commission (FRSC) started using it on vehicle plates number registered in the state. The essence was to buttress the vast agricultural and forest resources of Benue State.9 The name “Food Basket State” later attracted indigenes and non-indigenes as well as stakeholder in the agricultural sector. The name “Food Basket

State” portrays Benue State as having rich agricultural potentials, self-sufficiency in food production, and also a major export base for agricultural produce for the country.10 213

However, after careful investigation of the state of agriculture in Benue Sate, scholars like P. Ogiji, D. V. Uza, and T. Avav came to a conclusion that the “Food Basket of the

Nation” was a myth rather than a reality; and that it had become questionable as several neighbouring states were catching up with Benue in massive food production.11 In spite of these, it should be stated that agriculture in Benue State still has an edge over others especially in the year 2005 (See the table 6.8 below).

Table 6.8: Percentage Distribution of Working Population in Nigeria by Activity, 2005

S/No State Agriculture Fishing 1 Abia 43.80 0.10 2 Adamawa 49.00 0.90 3 Akwa Ibom 35.20 1.70 4 Anambra 34.70 0.10 5 Bauchi 35.10 0.80 6 Bayelsa 33.10 18.80 7 Benue 76.40 0.20 8 Borno 59.00 0.90 9 Cross River 68.10 0.30 10 Detal 37.60 6.30 11 Ebonyi 70.70 0.20 12 Edo 41.00 0.80 13 Ekiti 36.80 0.00 14 Enugu 44.40 0.00 15 Gombe 45.40 0.20 16 Imo 49.80 0.10 17 Jigawa 41.20 1.40 18 Kaduna 32.20 0.10 19 Kano 25.20 0.40 20 Katsina 40.40 0.10 21 Kebbi 46.60 2.10 22 Kogi 43.50 0.30 23 Kwara 24.20 0.30

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24 Lagos 1.70 0.80 25 Nasarawa 58.20 0.50 26 Niger 47.20 0.40 27 Ogun 31.20 0.70 28 Ondo 41.80 2.10 29 Osun 23.30 0.00 30 Oyo 23.10 0.01 31 Plateau 52.20 0.00 32 Rivers 48.80 4.10 33 Sokoto 47.90 0.50 34 Taraba 53.80 2.50 35 Yobe 24.20 0.70 36 Zamfara 41.30 0.10 37 FCT 27.50 0.00 Source: Adopted (Modified) from NBS, Social Statistics in Nigeria, 2005

Table 6.8 above clearly shows that Benue agriculture had the largest share of 76.40% of Nigeria’s working population as demonstrated on serial number eleven. It is against this backdrop that, the study argues that the CBN’s agricultural programmes contributed to the state acclamation of the “Food Basket of the Nation”.

In addition, the CBN has alleviated the plight of rural farmers through the establishment of rural banking scheme in the state.12 There is no denying the fact that, prior to the introduction of the scheme under review many farmers (usually rural dwellers) did not have access to banking facilities. These facilities were located only in the urban areas in the state especially, the state capital. But with the introduction of rural banking scheme, financial institutions spread out to reach out to rural farmers and as such Benue farmers began to save and obtain loans which in turn facilitated their agricultural productivity. This has reduced their challenge of over stressing themselves for funds to hire labour and also to buy farm inputs.

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Relatedly, the CBN has contributed to farmers’ education in the state. This has been achieved through two basic means. Firstly, the Bank under consideration has organised workshops at different points in time aimed at training the Participating Banks and the prospective beneficiary farmers on the farming techniques so that they stand the high chance of excelling in their agricultural productivity. Some of the most sensitive areas taught to the farmers were the application of fertilizers and chemicals. This was done in order to avoid destruction of crops leading to acquisition of high yields. Such Seminars were held at CBN

Makurdi Branch. The CBN equally sent extension workers on farm inspection and monitoring visits. Such visits were carried out by various experts who helped to educate farmers practically at their farms in order to avoid yield losses and to enhance productivity and improved yield.13 All these impact came together as a synergy for the development of agriculture in Benue State.

6.3 Challenges of Central Bank of Nigeria in Agricultural Development in Benue State

In spite of the achievements recorded by the CBN in agricultural development in

Benue State during the period under review, the Bank with its instruments of agricultural development was beseted with some serious challenges which hampered the CBN’s agricultural programmes from maximally attaining their set goals.

One of the challenges that hindered the CBN’s agricultural development programmes was the issue of lack or insufficient funding. Although millions and billions of naira had been voted and expended for these agricultural programmes, it should, however, be noted that this money was grossly inadequate to cater for the total success of the said programmes. The

Development of Finance Office (DFO) of the CBN, Makurdi Branch reveals that, the cost of supervision of farms is high, coupled with the large number of small scale applications it became difficult for the CBN to cater successfully for its programmes.14 The challenge of insufficient fund led to poor infrastructural base namely: roads, clean water, electricity and

216 communications, especially in rural areas, are grossly inadequate. This had hampered the operations of the financial sector as well as their clientele in the State and beyond.

Related to the above was the issue of corruption. Many literature dealing with corruption have shown that corruption was a virus that infested all the sectors of the Nigerian society including the banking sector. T. Time, J. Akighir, G. Ate and M. Ajav expressed their worry that since they joined the NACRDB (now BOA) to enable them acquire farm inputs with ease to enable them excel in their agricultural productivity, they have never benefitted from it, even for once. According to them, after meeting up with all the stipulated conditions, these institutions handpicked a good number of their relatives and men of affluence in the state, especially politicians and gave them loans. The long time customers like them were neglected. The menace of corruption has thwarted the intention of the CBN’s agricultural development programmes.16 To understand the quantum of the applicants and beneficiaries of agric loans in Benue State, see the table 6.9 herein:

Table 6.9: Number of Applicants and Beneficiaries of CBN Agric Loans under Bank of Agriculture, Makurdi, 2010 - 2015.

Year Number of Number of Amount Benefited Applicants Beneficiaries 2010 11,800 25 2,060,000.00 2011 N/A N/A N/A 2012 2,500 48 4,430,000.00 2013 3,115 217 23,512,000.00 2014 2,502 71 15,969,950.32 2015 7,500 12 134,540,786.42 Total 27,417 373 180,512,736.74 Source: Credit Book, Office of the Agric Credit Officer, Bank of Agriculture, Makurdi Branch, Office, 2018.

Table 6.9 above depicts that the number of applicants more than of the beneficiaries.

This has been clearly demonstrated from a period of 6 years. That is from 2010-2015. Having assessed its channelsof agricultural development, it is clear that the CBN contributed minimally to agricultural development in the study area.

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Another problem that prevented the CBN from succeeding maximally in its agricultural programmes is bureaucratic bottleneck. It has been revealed that the CBN and

Participating Banks (PBs) took a long time in processing the applications and sometimes after the planting periods were over. According to the Coordinator of Agricultural Activities,

Mikap (Miva Rice), G. Riga, some farmers waited quite for a long time but their farm inputs were not released on time, as such this caused their late planting leading to low yield.17 This can be attributed to a long process involved in the processing of loan applications. He argues further that some applicants were not given feedback concerning the status of their applications up to the time of this fieldwork. Delays such as these hindered the success of the programmes under consideration.

There was problem of over-reliance on sponsorship;18 Some of the farmers benefited from the CBN’s agricultural loans and they have become very dependent on such loans. They have neglected their responsibility of exploring other avenues to get money to excel in their agricultural activities. Year in year out, they based their agricultural plans wholly on the

CBN’s agricultural loans and in most cases, they could not access such loans. The resultant effect is that such farmers unconsciously suspended themselves from the agricultural activities. When they accessed such loans again, they had no option than to start from scratch thereby lowering agricultural production in the state.

Rural-Urban migration also constituted a challenge to the healthy growth of the

CBN’s agricultural development intervention programmes in Benue State.19 Due to lack of rural infrastructure, and the high rate of poverty and poor living conditions in the rural areas, there is a migration of able-bodied young men (who could have worked on the farms) to the urban centres in search of white collar jobs.20 The situation has deeply affected agricultural activities in the local area.

General insecurity to lives and property also posed a challenge hindering the total success of the CBN’s agricultural development programmes. The business environment, 218 particularly in most of the rural areas in the state is plagued with high incidence of insecurity to lives and property. The armed robbery attack on LAPO Microfinance Bank, Otukpo

Branch is a clear example of such insecurity situations.21 Also worthy of mention is the renewed Fulani herders’ attacks in the state. These herders adopted a clandestine approach of fighting especially the hit-and-run tactics; this has put a lot of farming communities under perpetual fear. Lamenting on this matter, a part-time farmer, J. M. Suega of Logo Local

Government said she was reluctant to continue with her farm activities, saying that, “I keep a reasonable amount of money to send to my parents home to help coordinate my farm work, but I contemplated whether herders will still attack our community”.22 This implies that herders constituted a hindrance to agricultural activities in the state. Collaborating on this issue, F. Igbahenah notes that:

In recent times, some farming communities in Gwer-West Local Government Area of Benue State have suffered series of attacks by armed fighters suspected to be mercenaries hired by Fulani nomads. These attacks have led to wanton loss of lives and property, as well as displacement of native farmers. Describing one of such attacks… The Benue State Emergency Management Agency (SEMA) said, the magnitude of the disasters and destruction (public buildings, basic service facilities, houses, agricultural lands et cetera) is horrific.23

Within the last decade, the rampaging herders have attacked and sacked several communities in Benue and some neighbouring states. Circumstances such as these hindered the CBN and its clientele to maximally achieve their agricultural targets.

Illiteracy also prevented the programmes in question for achieving set goals.

According to G. Riga of Miva Rice, many beneficiaries of the agricultural credit facilities cannot read and write.24 In this regard, they had a big challenge of understanding the instructions concerning application of herbicides and fertilizers. In many instances, they over applied while in certain cases, they under applied. The resultant effect was that crops were destroyed or webs took over the farm paving way to poor harvest. Those who experienced poor harvest find it difficult to repay back their loans as agreed.

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Indeed, these programmes suffered from high rate of loan default. This is also known as loan misappropriation. Some people collected credit facilities but did not service them as promised; rather they used the money for different things that were not connected to agricultural productivity, leading to the failure of agricultural development schemes.

Commenting on this issue, A. C. Abimiku was particular on the PBN that, “the highest proportion of households that benefited from the Peoples Bank of Nigeria (PBN) loan rather increased the quality and quantity of their meals in addition to marrying new wives instead of using the loan to increase productivity.25 The implication was that those who misappropriated the credit facilities found it difficult to repay the loans leading to high rate of default culminating to failure of the CBN’s agriculture programmes in Benue State and elsewhere in the country.

Associated with the above challenges are natural and operational constraints.

Numerous natural hazards like flood and drought have become prominent in Benue State.

They occurred by chance and when they occurred, they destroyed a lot of farm crops leading to low yield. The drought of 1987, the Benue floods (especially the ones of 2010 and 2012) caused much damaged on crops as earlier attested to by an Agri-Businessman Mr. D. A.

Unde who is a resident of Gyado Villa, Makurdi Town.26 The operational constraints associated with agro-allied industries operating in the state are legion and power is one of them. Power supply in Nigeria and Benue State particularly is not constant or stable but rather epileptic; this compelled the industrialist to spend much on diesel in order to enhance their productivity. This has hindered large scale production thereby reducing the purchasing capacity of agro-raw materials from farmers.27

6.4 State of Agriculture in Benue State

Even though the CBN and its clientele came together and formed a synergy for agricultural development, Benue agriculture in the period under review was subsistence- oriented. This means that the main economic support system of the people remained peasant 220 agriculture.28 The major economic activity of the people depended mostly on tropical ferruginous soils with low organic content and is generally lateritic and not too fertile. Such soils are not capable of supporting a gainful intensive agriculture for a considerable period of time. The geo-strategic location of the state coupled with its Guinea Savannah vegetation makes it feasible to cultivate a wide range of crops under rain-fed culture. These crops included rice, millet, guinea corn, soyabeans, maize, beniseed; root crops like yams and cassava.29 In addition to these are tree crops such as citrus, mango, and cashew, pea, among others.

In analysing the state of agriculture in Benue State the views of A. D. Igirgi, B. T.

Ashaver and D. V. Uza become apt. According to Igirgi (Former Commissioner of

Cooperatives and Rural Development, Benue State):

As the mainstay of the economy of Benue State, agriculture is no doubt of strategic importance. Yet, this vital sector has been left largely in the hands of resource-poor farmers who rely mainly on traditional practices for cultivation, processing and storage. Similarly there is a low level of agricultural mechanization, poor land management and high cost of agricultural inputs. These factors have led to low agricultural productivity, poor pricing of produce, and low earning from agricultural activities.30

The above representation put forward by Igirgi depicts Benue State agriculture in a poor condition or state. Ashaver (one time Commissioner for Agriculture, Benue State) on the other hand, contends that:

Benue State Agriculture is presently dominated by small scale farming in both the crop, livestock and fishery sub-sectors. There are very few numbers of large scale and/or commercial farms across the state. However, the aggregate productivity from these small scale farming units and the few large scale farms the state have continued to be the major supply of yam, cassava, rice, groundnuts, soyabeans, sesame, citrus and vegetables as well as animals like pigs, goats, sheep, poultry and fish to other parts of Nigeria and in some cases for export.31

Ashaver once more demonstrates that the state has about 482,000 farm families, the average farm family size of seven persons, with 3,360,000 persons earning their living from farming

221 and other agricultural activities. He argues that the state in question has the highest pig population of 946,046 contributing to 21 percent of swine herds in Nigeria.32

To collaborate the arguments by Igirgi and Ashaver, Uza, alludes that, “since 1976, agriculture in Benue State is dominated by small holder farmers who in spite of their peasant farming practices contributed immensely to the domestic food needs of Nigerians”.33 It cannot be wished that agriculture in the state is still subsistence, that is to say, it is crudely and poorly organized leading to low yields. The subsistence nature of agriculture in the state is manifest in livestock production too. Thus, while the state can boast of a great deal of livestock resources like goats, poultry, pigs, sheep, cattle, the traditional method of keeping them is free range. Similarly, fish and other aquatic resources are readily available in many rivers in the state and remain largely untapped since the age-old traditional method of exploitation ensures only a small catch.34

There is a practice of agro-forestry in the area under study. This involves the practice of planting economic tree crops like citrus, mangos, and cashews. This system has its advantages among others as the protection of the soil against erosion. Provision of a healthier micro-climate for the people, ensuring regular and sustained income, promote ground water storage and act as a panacea to the enormous deforestation. However, the planting of these trees aggravated the phenomenon of land disputes especially in Southern Tiv axis of Benue

State.35

According to I. Akaazua from Tsar-Mbaduku, Vandeikya Local Government and V.

D. Chia a student of Hydrology, at University of Nigeria ,Nsukka, disclosed that there is no irrigation facilities in Benue State despite the alarm sounded severally by the Federal and

Benue State Ministry of Agriculture and Water Resources. This, according to them, has nearly dashed the spirit of dry season farming.36 Few private individuals who attempted to do it, recorded high losses because of the cost involved in undertaking it. This in essence hindered or slowed the pace of agricultural productivity in the state. 222

In discussing the state of agriculture in the focal area, a Professor at the Department of

Fishery and Aquaculture, University of Agriculture Makurdi, P. Annune notes that Benue

State designed its agricultural policies in a way that it will never accommodate foreign agro- allied companies.37 The state over taxed the said companies, they had no option than relocate their business to other States. According to him, Olam, a foreign rice company, was compelled to leave the state so that Ashi Rice and Miva Rice will take the lead. This monopoly in rice business led to unhealthy development of rice farms and high prices in the state since there was no intense competition among the companies.38

Associated with above poor quality of the state of agriculture in the study area, T.

Avav identifies environmental, socio-economic and political factors constraining agriculture.39 Benue State agriculture is being threatened by environmental problems. These threats have cast doubts on the patriotic view held by D. I. Denga, that crops may fail nationwide due to geographical rebellion or climatic epilepsy, yet Benue State is still ahead of other states in food production to feed the Nation.40 In backing up his claim, Avav notes among others that, bush burning and flood disasters disturbed the Benue agro-ecosystem annually. These phenomena not only deplete soil fertility but also devastate it. Soil erosion has become a major problem for food production in most parts of the state.41

Benue State has been seriously deforested. The system of farming encourages the slashing and burning of trees and grasses. This activity is augmented by the high population densities in the rural agrarian communities in the State. Besides, there is a very high demand for firewood used for cooking.42 Deforestation is a pre-requisite for soil erosion which in turn hampers with agricultural productivity. The socio-economic and political constraints on the other hand can be seen from the removal of subsidy on fertilizer, and lack of fertilizer blending machine in the days fertilizer allocation and distribution have been heavily politicised. At one stage, the state had to obtain its fertilizer from Minna in Niger State.43 The lack of political will by successful administrations has contributed immensely to the sorry 223 state of agriculture in the area under review. It is on record that all the agro-based industries established during the administration of the Late Mr. Governor Aper Aku were productive while the regime lasted. Where are they now? 44

What a Benue farmer managed to produce in the hinterlands cannot be conveyed to the market centres because of lack of roads and means of transportation. These commodities are bulk-purchased by traders from other states at very low prices. While the traders make skyrocketing profits, the primary producers in Benue State are left to wallow in poverty. Most of them run out of food between April and July annually. The trend today in the State is that civil servants supply foodstuffs to their relations in rural areas between the said months.45

Perishable crops such as oranges, pepper, and tomatoes, among others are sold at give away prices. Indeed, the Benue farmer is left on the mercy of traders who usually come from other states and neighbouring countries. To have a graphic picture of the state of Benue State, B. T.

Ashaver provides the following key characteristics:

a. Subsistence agriculture with limited mechanization being practiced by farmers.

b. Poor crop yield per hectare.

c. Poor markets for agricultural produce.

d. Agriculture very unattractive to the youth.

e. Inadequacy of extension services

f. Agriculture Departments in local government areas are non functional and there is

poor staff training.

g. Poor irrigated agriculture.

h. Food processing and preservation procedures are largely traditional.

i. Poor and uncoordinated fish farming efforts.46

The above indicators have shown that even with the CBN’s agricultural development programmes in the State, Benue agriculture during the period under review is based largely

224 on traditional methods of farming practice thereby leading to poor harvests. The question now is what are the prospects of agricultural development in Benue State?

6.5 Prospects of Agricultural Development in Benue State

There is no gainsaying the fact that Benue State has immense agricultural endowments. Presently, it has an edge over most states of the Federation in food production as attested to in table 6.8 in this work.

Basically, the prospects of agriculture development in the state depend on the solutions to the critical challenges encountered by the CBN and other stakeholders in agricultural development in the area under review. However, based on the present trend, it seems that the prospects for agricultural development in the state are viable because of the following reasons.

The entire population of the State is aware of the importance of agriculture in the economy. The realisation motivated the CBN and PBs to initiate and implement measures that will assist farmers to enhance high agricultural productivity, especially by training their clientele (farmers) and giving them agricultural credit facilities to enhance their productivity.

More so, research findings by the CBN, scholars of Economics, Agronomy, Banking and finance, and History, among others, have shown that there is an improvement in the Benue agriculture and that the prospects for further growth in subsequent time are bright.

Benue State and private individuals have established some agricultural development agencies such as Benue Agricultural and Rural Development Authority (BNARDA), Benue

Tractor Hiring Agency (BENTHA), Agro-Millers Limited, and Taraku Mill, Terago

Commodities Limited, Mika (Miva Rice), and a lot more. These companies in a way contribute to agricultural development in Benue State and if resuscitated the sector will fare better.

Relatedly, Benue State has a vast arable land; estimated to be 33,955 square kilometres. The State has an estimated population of 4.2 million people and 482,000 farm 225 families.48 The average farm family size is 7 persons. Also about 80 per cent of its current population estimated 4.2 million people; that is, about 3,360,000 persons earned their living from farming and other agricultural activities.

Furthermore, is the responsiveness of Benue farners to new agricultural techniques.

The response of the people to agricultural activities has not dwindled even though they operate on strenuous conditions using crude implements they still sustained their efforts.

More so, the agricultural development programmes and policies in Benue State are farmers friendly. This is to say that policies regarding agriculture are now formulated in a manner to be realistic.

Emerging mechanised farming in the area under study is also a pointer to the fact that there is a prospect in the agricultural development. Benue State government established

Benue Tractor Hiring Agency to subsidise the prices of hiring mechanised farm implements.

As a result of this many people now carried out their farm work with the use of agricultural machines thereby increasing production and output.

Benue State is endowed with abundant agricultural resources. About 80 per cent of the total population depends on agriculture for their sustenance and livelihood.49 The State has favourable climatic condition and fertile soils conducive for rearing of animals and cultivation of virtually all crops grown in Nigeria.

6.6 Conclusion

From the evidence presented and the analyses made, it is crystal clear that the CBN has created landmarks in the area of agriculture in Benue State. These landmarks are made in tandem with Participating Banks, Federal Government and the farmers’ clientele. The CBN has enhanced successfully the operation of agro-allied industries, reduction of abysmal prices of food crops, motivated the formation of agricultural cooperative societies, given impetus to the sustainability of NAIC and alleviated plight of rural farmers and so on. However, there are a lot of challenges associated with the CBN’s agricultural intervention programme in the 226 area under consideration. These challenges or factors spanned from insufficient funding, corruption, bureaucratic bottleneck, over-reliance on sponsorship, inadequate public awareness, insecurity, illiteracy, and many more. The preceding factors formed a synergy to bring about the poor state of agriculture in the focal area. Many scholars and informants have acknowledged that though, agriculture in Benue State has an edge over other states, the state of agriculture in the State is poor. Yet, the chapter concludes that, the prospects for the advancement of agriculture in Benue State are viable and dependent on the solutions to challenges of agriculture in the area under study. Next is Chapter Seven, it delves into summary, conclusion and contribution to knowledge.

227

Endnotes

1. Oral Interview with M. Ityough, C.58, Civil Servant and Farmer, Gyado Villa, Makurdi 28.08.2016; A. A. Aba, C.40, Farmer, CBN, Makurdi, 29.08.2016; A. Ngoigo, C.55, Farmer, CBN, Makurdi, 29.08.2016; A. Liamgee, C.40, Farmer, CBN, Makurdi, 29.08.2016; P. Ejemoare, C.45, Farmer, CBN, Makurdi, & W. Ikyer, C.35, Applicant/Farmer, CBN, Makurdi, 29.08.2016.

2. Research Department, CBN Briefs (2012 – 2013 Edition) Abuja: CBN, 2013, p.95.

3. Oral Interview with H. Indyerker. Industralist/Proprietor, Hule and Sons Nig. Ltd, Wanune, 19.04.2017.

4. Oral Interview with A. Alaade, C.55, Soya Beans Dealer, Yandeve, Gboko, 19.04.2017.

5. Oral Interview with A. Alaade, C.55, Soya Beans Dealer, Yandeve, Gboko, 19.04.2017.

6. Oral Interview with D. Tyokighir, C.47, Industrialist (Administrative Manager) Hule and Songs Nigeria Limited, Wannune, 39.09.2016.

7. A. E. Idyorough, History and Philosophy of Social Welfare Services in Nigeria 1900 – 1960. Makurdi: Aboki Publishers, 2008, p.164.

8. Oral Interveiw with A. T. Anum, C.41, Insurer, NAIC – Makurdi, 04.05.2017.

9. P. Ogiji, “The Food Basket Paradox: Implication for Stimulating Food Security in Benue State”, in P. Ogiji (ed.) The Food Basket Myth; Implications for Food Security and Agricultural Policy Reform in Nigeria: Essays in Honour of David Iornongo Ker. Makurdi: Aboki Publishers, 2004, p.156.

10. P. Ogiji, “The Food Basket Paradox: Implication for Stimulating Food Security in Benue State”, in P. Ogiji (ed.) The Food Basket Myth… p.157.

11. P. Ogiji, “The Food Basket Paradox: Implication for Stimulating Food Security in Benue State”, in P. Ogiji (ed.) The Food Basket Myth… Also see D. V. Uza, “Agriculture in Benue State” in A. Pine (ed.) Milestones in Leadership: Essays in Honour of Governor Gabriel Suswam. Makurdi: Aboki Publishers, 2010, p.67.

12. Oral Interview with A. Igbum, C.48, ICT Head, CBN, Makurdi Branch, 04.05.2017.

13. Oral Interview with A. Igbum, C.48, ICT Head, CBN, Makurdi Branch, 04.05.2017.

14. Development Finance Office (DFO), CBN Makurdi Branch, Unpublished Manuscript, 2016.

15. Oral Interview with T. Time, C.60, Farmer, BOA, Makurdi, 24.04.2017; Oral interview with J. Akighir, C.27, Applicant/Farmer, BO, Makurdi, 24.04.2017; Oral interview with G. Ate, C.45, Farmer, BOA Makurdi, 24.04.2017 & M. Ajav, C.42, Farmer, BOA, Makurdi, 24.04.2017. 228

16. Oral Interview with T. Time, C.60, Farmer, BOA, Makurdi, 24.04.2017; Oral interview with J. Akighir…

17. Oral Interview with G. Riga, C.37, Industrialist, Mikap (Miva Rice), Makurdi, 28.04.2017.

18. Oral Interview with M. Amase, C.38, Banker, Skye Bank, Makurdi, 04.05.2017.

19. Oral Interview with M. Amase, C.38, Banker, Skye Bank, Makurdi, 04.05.2017.

20. Oral Interview with M. Amase, C.38, Banker, Skye Bank, Makurdi, 04.05.2017.

21. Oral Interview with S. Ukaibe, C.35, Banker, High Level, Makurdi, 05.05.2017.

22. Oral Interview with J. M. Suega, C.25, Student/Part time Farmer, 02.03.2017.

23. F. Igbahenah, “A Historical Perspective of Tiv-Fulani Crisis in Gwer-West Local Government Area of Benue State”, in P. I. Ukase, & S. I. Ugbegili (eds.) Tyoshin in Historical Perspective. Vol.1, Makurdi: Intergrity Publishers, 2016, p.74.

24. Oral Interview with G. Riga, C.37, Industrialist, Mikap (Miva Rice), Makurdi, 28.04.2017.

25. A. C. Abimiku, “An Appraisal of Poverty Alleviation in Nigeria: A Case Study of Benue, Nassarawa and Plateau State, 1986-2003”. Available at http://spaceunijos.edu.ng/handle/10486/876, Accessed on 19:12:2016.

26. Oral Interview with D. A. Unde, C.75, Aribusinessman, Gyado Villa, Makurdi, 28.08.2016.

27. Oral Interview with G. Riga, C.37, Industrialist, Mikap (Miva Rice), Makurdi, 28.04.2017.

28. N. T. Gbehe, “Geo-Political Perspectives on the Resource Control in the Middle Belt Region of Nigeria: Periscopy Agriculture in the Benue Economy”, in O. O. Okpeh, A. Okau & S. U. Fwatshak (eds.) The Middle Belt in the Shadow of Nigeria. Makurdi: Oracle Business Ltd; 2007; Pp.146-147.

29. N. T. Gbehe, “Geo-Political Perspectives… p.147.

30. A. D. Igirgi, “Changes and Challenges wither Benue State in the New Millennium?”, in A. Lyam, Y. A. Ochefu, J. A. Sambe & A. M. Adejo (eds.) Benue State in Perspective. Makurdi: Aboki Publisher, 2005, p.321.

31. B. T. Ashaver, Benue State Agriculture (Presentation to Potential Investors and Lowa State University Extension Study Team to Benue State, Nigeria), (Other publication details not stated) 2008, Pp.3-4.

32. B. T. Ashaver, Benue State Agriculture (Presentation to Potential Investors… p.8.

229

33. D. V. Uza, “Agriculture in Benue State Since 1976”, in A. Pine (ed.) Milestones in Leadership: Essays in Honour of Governor Gabriel Suswam. Makurdi: Aboki Publishers, 2010, p.68.

34. A. T. Nwanwene, “The Use of Radio in Disseminating Agricultural Innovations: A Case Study of Selected Communities in Benue State”, in Benue Valley Journal of Humanities. Vol.3, No.2, Makurdi: Aboki Publishers, 2000, p.107.

35. Oral Interview with O. Uhebele, C.50, Farmer, Anyamgura, Konshisha LGA, Benue State, 17.06.2017.

36. Oral Interview with I. Akaaza, C.80, Farmer, Tsar-Mbadukwu, Vandeikya LGA, Benue State, 18.06.2017; Oral Interview with V. D. Chia, C.34, Student/Civil Servant, High Level, Makurdi, Benue State, 24.04.2017.

37. Oral Interview with P. Annune, C.68, Lecturer, Zaria, Kaduna State, 18.05.2017.

38. Oral Interview with P. Annune, C.68, Lecturer, Zaria, Kaduna State, 18.05.2017.

39. T. Avav, “Benue State Agriculture Sustianing the Food Basket Status in the Twenty- First Century”, in A. Lyam, Y. A. Ochefu, J. A. Sambe & A. M. Adejo (eds.) Benue State in Perspective. Makurdi: Aboki Publisher, 2005, p.260.

40. T. Avav, “Benue State Agriculture Sustianing the Food Basket Status… p.260.

41. T. Avav, “Benue State Agriculture Sustianing the Food Basket Status… p.260.

42. T. Avav, “Benue State Agriculture Sustianing the Food Basket Status… p.260.

43. Oral Interview with C. M. Tseaa, C.38, Applicant, Makurdi, Benue State, 20.05.2017.

44. Oral Interview with C. M. Tseaa, C.38, Applicant, Makurdi, Benue State, 20.05.2017.

45. T. Avav, “Benue State Agriculture Sustianing the Food Basket Status… p.261.

46. B. T. Ashaver, Benue State Agriculture (Presentation to Potential Investors… p.4.

47. F. I. Akoso & N. I. Achamber, “Agricultural Planning in the Central Zone of Nigeria”, Part of the National Agricultural Research Report (Unpublished), 1994.

48. B. T. Ashaver, Benue State Agriculture (Presentation to Potential Investors… p.4.

49. B. T. Ashaver, Benue State Agriculture (Presentation to Potential Investors… p.4.

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CHAPTER SEVEN

SUMMARY, CONCLUSION AND CONTRIBUTION TO KNOWLEDGE

7.1 Summary and Conclusion

This work has centred on the Central Bank of Nigeria (CBN) and Agricultural

Development in Benue State between 1978 and 2015. The concluding chapter

provides the basis for suggestions that are felt, would enhance a relative conducive

environment for the CBN and other stakeholders for the purposes of agricultural

development. This in turn would facilitate a more result oriented agricultural

development in Benue State. The study has disclosed that though the CBN was

established in 1958, it started contributing meaningfully to agricultural development

in 1978 when Agricultural Credit Guarantee Scheme Fund (ACGSF) was inaugurated

to assist farmers in their agricultural productivity.

The work has established that banking industry started from Greece and it was

embraced by Rome and Europe and then other continents of the globe. It has shown

that the emergence of banking industry in Nigeria paved the way for establishment of

the CBN in order to regulate the Nigerian Banking Industry. The study shed more

light on the developmental functions of the CBN from agricultural perspetive.

The study emphasised that the traditional functions of the CBN are also known

as the principal objectives of the Bank, as embodied in the CBN Act. These functions

include issuance of legal tender currency in Nigeria, maintenance of external reserves

to safeguard the international value of that currency; promotion of monetary stability

and a sound financial system, and acting as banker and financial adviser to the Federal

Government of Nigeria. Monetary policy functions on the other hand, include acting

as banker to all commercial, merchants, development bank and other financial

institutions, foreign exchange monitoring and lender of last resort. While

developmental functions spanned from the development of local money and capital 231 markets, promotion and assistance to the development of banks and institutions, and initiating agricultural development schemes.

Thus, the work presented a graphic picture of the CBN’s agricultural development programmes or intervention schemes in Benue State within the confines of the study period with the support of relevant statistics. Written materials and oral interviews have gone a long way in giving a fair picture of its activities in the area under review. Apart from the PBN, all other components of rural banking scheme such as Microfinance Bank (formerly Community Bank) and NACRDB were discussed with the aid of statistical bank-up.

The study has established that huge sums of money were voted and expended for agricultural development in Benue State under ACGSF. From 1978 to 2015, a total of 45,896 persons have benefited the sum of N4, 694,188.35 which enabled them to partake in different types of farming activities, thereby leading to agricultural development in the State. It further showed that 26,427 persons have repaid their loans and this has amounted to the tonne of N2, 696,918.20.

The study emphasised that even with this, the ACGSF encountered some daunting challenges, which ranged from poor loan repayment culture, declined in the number of Participating Banks, lack of trained and inexperienced personnel in agricultural financing and loan administration. In most of the Participating Banks in

Benue State, insufficient loan facilities to farmers, and after the deregulation of financial system, banks started shying away by reducing their loans to the sector due to perceived risks. However, in order to reverse the declining trend, several innovations and products were introduced such as Self-Help Groups (SHGs) Linkage

Programme, Trust Fund Model (TFM). This analysis of the CBN’s agricultural intervention schemes was done ruminating on their aims and objectives, modus

232 operandi, statistical figures, the extent of their achievements as well as the challenges inherent with their operations.

The study also examined the role of the CBN in the development of Agro- allied industries in the area under consideration under the platform of Commercial

Agricultural Credit Scheme (CACS), emphasis were laid on Hule and Sons Nigeria

Limited (Oil Division) Wannune, Terago Commodities Limited Makurdi, and Mikap

(Miva Rice) Nigeria Limited. The fieldwork conducted in 2015 revealed that with the existence of these industries, peasant farmers, produced high and sold to the operators at better prices and this encouraged farmer to produce higher, paving way to agricultural development in the state and beyond.

The analysis on these agro-allied industries was also done showing the records of loan facilities obtained under the umbrella of CACS. It reflects that under the

CBN’s CACS in Benue State in 2009, Hule and Sons Limited benefited a sum of

N243, 380, 000.00 while Mikap Nigeria Limited obtained a loan facility of N269,

498, 695.00 in 2011. In 2012, Teragro Commodities Limited secured a loan of N2,

000,000,000.00. Mikap Nigeria Limited also obtained loan facilities of N65, 993,

007.00 and N33, 874, 600.00 in 2014 and 2016 respectively. Hule and Sons Nigeria

Limited benefited for the second time a loan facility of N560, 000,000.00. The aforementioned companies used these credit facilities to purchase agro raw materials from both farmers and grain dealers with better prices compared to the prices in the open markets. This comparative advantage in turn gives impetus to agricultural development in the area under review.

Even with the loan facilities, agro-allied industries under review still encountered diverse challenges. These challenges ranged from epileptic power supply, lack of adequate finance, scarcity of water, poor infrastructure, and pre- mature harvest of agro-raw materials, among others. The study has also examined the 233

CBN’s ABP, which was introduced and launched on November 11, 2015. So far,

ABP is the major agricultural development programme introduced by the administration of President Buhari and the current CBN Governor Mr. Emefiele.

The study has examined the state of agriculture in Benue State after the CBN’s agricultural development intervention schemes and found it to be subsistence oriented. This means that it is peasant based and the soils are characterized by low organic nutrients content in Benue State. Though there was an increment in the production and yield, earning the State the description “Food Basket of the Nation”.

The work stated major constraints threatening the sustainability of agricultural productivity. These constraints have been categorized as environmental, socio- economic and political. The work argued that the viability of the prospects for agricultural development in the state depends on the solutions to the challenges above.

It should be pointed out that agriculture is an important aspect of economic life and it has engaged the attention of man over the centuries. Since the beginning of sedentary life, man has become conscious of food security. Much later and with the establishment of schools, colleges and universities, agriculture constituted part of their curricula. All these are aimed at intimating man on the need and methods of food production and process. Even financial institutions like World Bank (WB) and Central

Bank of Nigeria (CBN) have engaged in agricultural development as part of their mandate of developing the world and the Nigerian economy respectively.

It is in the light of the above that, this research has examined the activities of the CBN and its impact on agricultural development in Benue State using financial led growth theory which postulates that financial market significantly boost rear economic growth and development. Yet, this work noted that the CBN does not totally transform agricultural sector in Benue State. In fact, it has been found that a lot of people obtained credit facilities under different agricultural programmes 234 established and manned by the CBN in tandem with the Federal Government,

Participating Banks and other stakeholders. These loan facilities were not used judiciously; however, others used it judiciously to develop their personal farms and agro-allied industries which in turn bolstered agricultural productivity in Benue State.

Though, in doing this, both the CBN, Participating Banks and farmers have been caught in the wind of challenges, which ranged from lack of adequate funds, poor loan repayment, high cost of due diligence, and illiteracy, among others.

The foregoing is an indication that the contribution of the CBN to the development of agriculture in the area under consideration is marginal. That is to say, that the efforts of various agricultural development intervention programmes of the

CBN as contained herein have failed to do away completely, the challenges bedevilling agricultural development in Nigeria and Benue State in particular.

Farmers complained of natural disasters, lack of storage facilities, lack of mechanization, and collaterals, amongst other challenges.

As at the time of carrying out this study, some farmers expressed their unwillingness to continue with their farm work because of the renewed Fulani

Herders attacks and the other challenges already mentioned above. Therefore, there is a need for the CBN, participating institutions, and farmers operating in the State to intensify their collaborative efforts for agricultural development. This will go a long way in enhancing food security in Benue State and Nigeria on the broader perspective.

Considering the obstacles which hindered the CBN’s agricultural programmes from maximally attaining set goals in the study area as discussed earlier, this study makes some policy recommendations that would serve as solution to the challenges identified.

235

Funding was one of the challenges hindering CBN’s agricultural intervention programmes in Benue State. Farmers usually access funds from the CBN through participating financial institutions. However, most times funds are not forthcoming and it becomes difficult for farmers to engage in their productive activities. Therefore,

CBN in collaboration with the participating financial institutions or banks should endeavour to continuously and consistently sponsor farmers in their production activities in good time.

There is need to eschew corruption; for agricultural activities in the study area to be successful, both officials handling the CBN’s agricultural development programmes and the prospective beneficiaries of the said programmes should avoid corrupt tendencies that would render the programme less effective. People should therefore, be zero tolerant of corruption. CBN officials should give the money to the target group(s) without diverting it to other channels.

Farmers on their part should endeavour to use their loan facilities judiciously and prudently, and repay as at when due, so that the CBN would be more forthcoming or willing to fund their farming activities. Most often, it is because farmers fail to repay the loaned facilities that hinder them from accessing more funds from the CBN intervention agricultural fund. The issue of accountability, transparency and credibility is very important and it is the only tool farmers can use to regularly access funds from the various CBN’s agricultural schemes.

Farmers should not be over dependent on the CBN’s loan facilities, they should create another avenue for resource mobilization to enable them borrow or generate money for agricultural productivity. This can be through indigenous forms of capital mobilization in form of Adashi, Bam and Kwagh-haan, among others.

236

There is need for agricultural development institutions in the state to spread out, because there is over concentration of these institutions in the urban areas, making it difficult for farmers who are usually rural dwellers to access for loans.

Operational constraints in form of delays have been acknowledged in this study. In this regard, the study recommends that the CBN should use its good office to effect this change. That is, it should liaise with the Participating Banks and farmers to submit and process applications and release funds on time to the successful applicants in order to prevent delays in farming activities.

The State Government should liaise with the Federal Government to strengthen irrigation farming in order to do away with the problem of drought and other natural disaster that constitute menace to agricultural production. If this is done, the beneficiaries of the CBN’s agricultural loan facilities will contribute more meaningfully to agricultural development in the state.

Agro-allied industries in the area under review suffered the challenge of epileptic power supply and as such they spent much on diesel. In this wise, the study recommends that all the stakeholders in CBN’s agricultural development schemes should sign and implement an MOU with Power Holding Company of Nigeria

(PHCN) to improve on power supply in order to reduce the operational cost of these industries. This will enable them to buy agro-raw materials in larger quantities thereby increasing their production. Farmers will also intensify their production capacity leading to agricultural development in the state.

It is noticed that Fulani herders invaded many farms including those belonging to the beneficiaries of the CBN’s credit facilities thereby constituting a challenge of loan repayment. In this regard, it is recommended that the State Government should strengthen the implementation of the Anti-Open Grazing Law in order to do away with herders’ invasion of farms and other related challenges. 237

Lastly, illiteracy has also been detected as a factor that thwarted the aim of the

Bank’s agricultural development schemes. Thus, the CBN should employ, and

invigorate existing extension workers who understand various languages in the State

to educate farmers in their local languages on various issues including the application

of loans, chemicals, fertilizers, et cetera in order to excel in their farming activities.

This would create a fertile ground for agricultural development in Benue State.

If the above recommended measures are taken into consideration, the CBN’s

agricultural development intervention schemes will be able to yield fruitful results.

This is an implication that the development of agriculture will be taken to higher

heights, facilitating and culminating to higher level of food security which is desired

in Benue State and the whole federation.

7.2 Contribution to Knowledge

This study entitled “Central Bank of Nigeria and Agricultural Development in

Benue State, 1978– 2015” contributes to knowledge as follows: Firstly, It provides

comprehensive data (analytical and statistical) on the major efforts made by the CBN

towards agricultural development in Benue State.The thesis clearly showes that the

CBN under the auspices of both civilian and military administrations have contributed

to agricultural development in the study area and elsewhere. The study has also

contributed to knowledge by challenging and filling the existing vacuum created by

some works on the issues of central bank and agricultural development in Benue

State, Nigeria, Africa and elsewhere in the world. Lastly, the study has made policy

suggestions that if taken would reposition CBN and other key stakeholders for

optimal performance and sustainability of agricultural sector, both in the present and

in future. Inspite of the above contribution to knowledge, the study did not lay claim

that the research on the Central Bank in agricultural development has been exhausted.

238

Scholars should also identify those areas that are yet to be fully researched and carry out their research for the advancement of human knowledge.

239

BIBLIOGRAPHY

PRIMARY SOURCES a. Oral Interviews and Particulars of the Informants

S/No Name Sex Age Occupation Place of Date of Interview Interview 1 Aba, A. Male 40 Farmer/Applicant CBN, Makurdi, 29.08.2016 Anthony Benue State 2 Abah, Lafia Male 31 Farmer Excellent, MfB, 05.05.2017 C. High-Level, Mkd 3 Adakole, Male 45 Civil Servant/Part- Makurdi, Benue 20.09.2016 Adamu Time Farmer State 4 Adediji, Jude Male 48 Industrialist Terago 20.06.2017 Commodities, Adaka, Makurdi, Benue State 5 Adi, Daniel Male 56 Industrialists Miva Rice, 28.04.2017 M. Makurdi, Benue State 6 Adi, Daniel Male 56 Industrialist/Manager Vandeiky, Benue 28.04.2017 M. Administration State 7 Adi, Ize Male 80 Ex-Farmer Agla, Etulo, 30.10.2010 Katsina-Ala 8 Agene, Male 40 Fruits Trader Aokpe Raod, 20.09.2015 Sunday Ugbokolo, Okpokwu LGA, Benue State 9 Ajav, Mary Female 42 Farmer Nakka, Gwer- 24.04.2017 West, Benue State 10 Ajio Felicia Female 52 Civil Servant/Farmer Katsina-Ala, 31.09.2016 Benue State 11 Akaaza, Itser Female 80 Farmer Tsar-Mbadukwu 18.06.2017 12 Akighir, Jude Male 27 Applicant/Farmer BOA, Makurdi, 24.04.2017 Benue State 13 Alaade, Male 55 Farmer/Soyabeans Yandev, Gboko, 19.04.2017 Ndyer dealers Benue State 14 Alough, Male 78 Farmer/Businessman Mbanor, 07.12.2016 Ansha Konshisha, Benue State 15 Amase, Mark Male 38 Banker Skye Bank, 04.05.2017 Makurdi, Benue State 16 Ande, Male 56 Civil Servant/Ex- Korinya, 16.06.2017 Augustine Banker Konshisha LGA, Benue State 17 Anhiev, Female 78 Kolanut Trader Tsar, Mbaduku, 12.07.2016 Abashia Benue State 240

18 Annune, Paul Male 68 Lecturer Zaria, Kaduna 18.05.2017 State 19 Anum, Alex Male 41 Insurer, NAIC Makurdi, Benue 04.05.2017 T. State 20 Asema, Male 60 Banker/Manager BOA, Makurdi, 15.06.2017 Geoffrey T. Benue State 21 Ate, Gabriel Male 45 Farmer BOA, Makurdi, 24.04.2017 Benue State 22 Awashima, Male 55 Civil Servant Adikpo, Benue 04.03.2016 Theophilus State, Benue State 23 Bar, Male 55 Farmer BOA, Makurdi, 20.06.2017 Augustine Benue State 24 Chia, Female 34 Student/Civil Servant High-Level, 24.04.2017 Vandefan D. Makurdi, Benue State 55 Choko, Male 50 Civil Servant/Farmer Gbajimba, Guma, 28.09.2016 Alfred Benue State 26 Denen Tofi, Male 40 Lecturer/Part-Time Gboko, Benue 09.09.2016 Aondoakula Farmer State 27 Denen Tofi, Female 80 House Wife Gboko, Benue 09.09.2016 Ayngahungur State 28 Dzapine, Male 37 Civil Servant Aondoana, Gwer- 28.08.2016 Stephen West, Makurdi, Benue State 29 Ejemeare, Male 45 Farmer Igumale, Ado, 29.08.2016 Peter Benue State 30 Ekahinu, Male 45 Civil Servant/Part- Agatu, Benue 20.09.2016 Isaac Time Farmer State 31 Fagbola, M. Male 56 Farmer, Manager Oju, Benue State 03.05.2016 PBN, Gboko 32 Gaga, Basil Male 56 Civil Servant Korinya, Gaav, 07.08.2016 Benue State 33 Hule, Male 59 Industrialist/Chairma Hule and Sons 28.06.2017 Indyerkaa n Nig. Ltd. Tarka, LGA, Benue State 34 Ibamegh, Male 60 Mango Farmer Tse-Akosu, 25.08.2016 Igbayima Tsambe, Vandeikya LGA, Benue State 35 Ierve, Male 75 Retiree Gbajimba, Guma 30.11.2016 Abokwagh LGA 36 Igbum, Male 48 Banker/ICT Head CBN, Makurdi, 04.05.2017 Anderson Benue State 37 Ijir, Female 45 Farmer Wannune, Tarka 28.06.2017 Hembadoon LGA, Benue State 38 Ikpato, Female 45 Farmer Ikyobo, Ukan, 30.08.2016 Dorcas Benue State 39 Ikyer, Male 35 Farmer/Applicant Aliade, Gwer- 29.08.2016 241

Wilfred East, Benue State 40 Inalegwu, Male 50 Businessman Otukpo, Benue 10.05.2016 Stephen State 41 Indyer, Male 48 Farmer/Businessman Zaki-Biam, 26.04.2017 Avakaa Benue State 42 Iorgba, Female 38 Poultry Farmer Gboko, Benue 19.04.2017 Dinah State 43 Iorkyaan, Male 80 Farmer Korinya-Gaav, 16.06.2017 Gwa Konshisha LGA, Benue State 44 Ioryue, Peter Male 50 Farmer Taraku, Gwer- 29.06.2017 East LGA, Benue State 45 Isaiah, Ande Male 35 Banker CBN, Makurdi, 26.05.2017 Benue State 46 Itser, Akaaza Female 80 Farmer/Kolanut Tsar, Mbaduku, 12.07.2016 Trader Benue State 47 Ityough, Female 58 Civil Servant/Farmer Gyaado Villa, 28.08.2016 Martha Makurdi, Benue State 49 Kpoughul, Male 36 Applicant/Farmer High-Level, 11.06.2017 Nomor Makurdi, Benue State 50 Kuanum, Female 38 Civil Servant/Part- Makurdi, Benue 20.09.2016 Mercy Time Farmer State 51 Kusugh, Male 42 Civil Servant Makurdi, Benue 28.04.2017 Msugh State 52 Loho, David Male 62 Civil Servant Makurdi, Benue 28.08.2016 State 53 Mishin, Female 50 Civil Servant Korinya, 13.06.2017 Caroline M. Konshisha LGA, Benue State 54 Mkeenem, Male 50 Civil Servant/Part- Makurdi, Benue 20.09.2016 Sikoh Time Farmer State 55 Mohammed, Male 55 Banker CBN, Abuja 17.05.2017 Sani F. 56 Ngoigo, J. Male 55 Farmer CBN, Makurdi, 29.08.2016 Atume Benue State 57 Nwabuoku, Female 51 Industrialist/Chairma Terago 20.06.2017 Angela n Commodities, Adaka, Makurdi, Benue State 58 Ogah, Male 48 Civil Servant Oju, Benue State 15.06.2017 George 59 Ogbu, Simon Male 65 Retiree Agatu LGA, 04.03.2017 Benue State. 60 Okewu, Male 45 Civil Servant/Farmer Oju, Oju LGA, 30.09.2016 Gabriel Benue State 61 Oko, Jane Female 53 Banker Okpoga, Makurdi 19.04.2017 62 Olabelebe, Male 55 Manager/Banker Excellent MfB, 15.06.2017 242

Abraham Mkd, Benue State 63 Omale, Male 40 Civil Servant/Part- Makurdi, Benue 20.09.2016 Emmanuel I. Time Farmer State 64 Onuh, Male 45 Civil Servant/Part- Otukpa, 20.09.2016 Sunday Time Farmer Ogbadibo Benue State 65 Opita, Julie Female 66 Retiree Otukpo, Benue 20.09.2015 State 66 Pesa, Euince Female 38 Civil Servant/Part- Makurdi, Benue 20.09.2016 Time Farmer State 67 Riga, Gideon Male 37 Industrialist Mikap (Miva 28.04.2017 Rive) Makurdi 68 Suega, Joy Female 25 Student/Part-Time Wuse, Abuja 02.03.2017 M. Farmer 69 Terngu, Female 41 Farmer Wannune, Tarka 28.06.2017 Mbakasev LGA, Benue State 70 Terver, Achir Male 40 Cyclist/Orange Gboko, Benue 19.04.2017 Dealer State 71 Tija, Orngu Male 50 Mango Farmer Tse-Tija, Gaav, 13.06.2017 Konshisha LGA, Benue State 72 Tijah, Patrick Male 65 Farm Manager College of 19.04.2017 T. Agriculture, Yandev, Benue State 73 Time, Male 60 Farmer BOA, Makurdi, 24.04.2017 Tyoaan Benue State 74 Tion, Male 34 Applicant/Farmer Lessel Ushongo, 11.06.2017 Thomas Benue State 75 Tseaa, Male 38 Applicant Adeiyongo, 20.05.2017 Cosmos, M. Vandeikya Benue State 76 Tsendiir, Male 36 Applicant/Farmer Zaki-Biam, Ukum 24.06.2017 Verlumun F. 77 Tugba, Male 40 Vertinary Apir, Makurdi, 29.08.2016 Raphael Doctor/Farmer Benue State 78 Tume, Male 47 Farmer, Banker, PBN Wannune, Tarka, 22.012.2016 Ternenge Benue State 79 Tyokighir, Male 47 Industrialists Wannune, Tarka 39.09.2016 David LGA, Benue State 80 Tyokighir, Male 47 Industrialist/Administ Hule and Sons 28.06.2017 David rative Manager Nig. Ltd. Tarka, LGA, Benue State 81 Ude, Charles Male 36 Civil Servant/Former Katsina-Ala, 20.06.2017 Manager, Mikap Benue State 85 Uhambe, Male 48 Businessman/Farmer Taraku, Gwer- 29.06.2017 John East LGA, Benue 243

State 86 Uhebele, Male 50 Farmer Anyamnjura, 17.06.2017 Ornguga Konshisha LGA, Benue State 87 Uji, Vincent Male 63 Industrialist/Lawyer Adikpo, Kwande, 20.02.2017 Benue State 88 Ukaibe, Male 35 Banker High-Level, 05.05.2017 Solomon Makurdi, Benue State 89 Unde, Dennis Male 75 Agribusiness man Gyado Villa, 28.08.2016 A. Makurdi, Benue State 90 Upaa, Male 53 Civil Servant/Farmer Wannune, Tarka 28.06.2017 Edward LGA, Benue State 91 Usaka, Male 53 Industrialist/Account Hule and Sons 28.06.017 Simon ant Nig. Ltd. Tarka, LGA, Benue State 92 Usoro, Male 64 Banker CBN, Makurdi, 04.05.2017 Iberedem Benue State 93 Vembeh, Female 48 Civil Servant/Farmer Wannune, Benue 31.09.2016 Betty State 94 Yakubu, Female 27 Industrialist/Coordina Mikap (Miva 28.04.2017 Lydia tor, CBN Anchor Rice), Makurdi, Borrowers Benue State Programme

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Ashaver, B. T. Benue State Agriculture (Presentation to Potential Investors and Lowa State University Extension Study Team to Benue State, Nigeria), (Other publication details not stated) 2008.

Benue State House of Assembly Report of the Joint Ad Hoc Committee on the Assessment of the Performance of the Ministry of Commerce, Industry and Tourism, 2009. 244

Department of Development Finance, CBN, Guidelines for Commercial Agriculture Credit Scheme (CACS). Federal Government of Nigeria, Federal Republic of Nigeria official Gazette, 2006 census, No. 24, vol. 94, Lagos: Federal Government Printer, 2008.

Federal Ministry of Information, Third National Development Plan, 1975-1979.

Federal Republic of Nigeria, 2006 Population Census

Government of Nigeria, First National Development Plan, 1962-1968.

Governor Aper Aku’s Address on 22nd Independence Anniversary Celebration and the 3rd Year of his Administration.

Guidelines for the Interest Drawback Programme. This was obtained from the Development Finance Office, CBN Makurdi Branch. It was prepared by the Development Finance Department, Central Bank of Nigeria, Abuja, December, 2002.

Report of the Committee on the Reactivation of Benue State Owned Ailing Industries, 1976.

Research Department, CBN Briefs. 1997 Series, June 1997.

Research Department, CBN Briefs. Series No. 2006/2007/01

Research Department, CBN Briefs. 2012-2013 Edition.

Research Development, CBN, Annual Report and Statement of Accounts, 2013, Part A (Financial).

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Bonat, Z. K. A. “Agricultural Development Policy Implementation and Relations of Exploitation in Zaria & Katsina Provinces of Northern Nigeria, 1926-1966”. Ph.D, Department of History, ABU, 2015.

Eche, M. A. “The Role of Agric Credit on Rural Development: A Case Study of Livestock Enterprises in Three Local Government Areas of the State. PGD Project Report, Department of Agric Economics and Extension, University of Agriculture, Makurdi, 1999.

Fada, S. A. “An Assessment of Fadama III Intervention in Benue State”. Ph.D Thesis, Department of Political Science, Benue State University, Makurdi, 2017.

Gbileve, U.A. “A History of Agricultural Development Company in Benue State, 1977-2007”. M.A. Dissertation, Department of History Benue State University, Makurdi, 2013.

Ityonzughul, T.T. “A History of Co-operative Societies in the Socio-Economic Development of Southern Tivland, 1960-2010”. M.A. Dissertation, Department of History, Benue State University, Makurdi, 2013.

Normor, D. T. “Market Access and Agricultural Production of Yam Farmers in Benue State”. Ph.D Thesis, Department of Economics, Benue State University, Makurdi, 2015.

Yecho, E. I. “The Role of Women in the Socio-Economic Development of Korinya, 1850-2000”. M.A. Dissertation, Department of History, Benue State University, Makurdi, 2004.

Yio, B.W. “A History of Industrial Development Initiatives in Benue State”. Ph.D Thesis, Department of History, Benue State University, Makurdi, 2014. g. Internet Materials

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http://www.fdic.gov.bank/index.html. 253 http://www.benustate.gov.ng/index.php-2009. http://www.historyworld.net/worldhis/plainTesthistoryasp?historyid=AC19XZZI/q/cl ocuy http://www.cbn.gov.ng/AboutCBN/history.asp http://www.creativecommons.org/licenses/by-nc/30.01 http://www.iiste.org http://www.microthink.org/jmr http://urf.nigeriagovernance.org/organisation/views/1004 http://www.cbn.gov.ng. http://www.cbn.gov.ng. http://www.cbngroupgovng.com/agric-credits. http://www.naic.gov.ng/abut-us-mision-vision. http://www.premiumtimesng.com/business/business-interview/202329-michael- aondoakaas-rice-business-attracted-americas-attention.html. http://thenationonlineng.net/why-i-ventured-into-massive-rice-production-aondoakaa. http://www.dailytrust.com.ng/daily/agriculture/51052-miva-rice-generates-over-n9bn- income-annually-aondoakaa.

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APPENDIX II

AGRICULTURAL CREDIT GUARANTEE SCHEME FUND (ACGSF), BENUE STATE Month: August 2009 Particulars of Guarantee Certificate Advance Name & Business Type of Nature Amount Rate of Dura No. Date Date of Address of Borrower Farming (=N=) Interest tion Expiry Activity (Mo and nths) Crop/Lives tock Bitto Benjamin Yam Loan 50,000.00 16% 10 BN/UBN/207/09/630 14/08/2009 30/04/2010 John O. Bolaji “ “ 200,000.00 “ “ BN/UBN/208/09/631 “ “ Jacob T. Akaazua “ “ 70,000.00 “ “ BN/UBN/209/09/632 “ “ Mrs. Caroline “ “ 100,000.00 “ “ BN/UBN/210/09/633 “ “ Umammeh Fidelis I. Akosu Rice Loan 600,000.00 16% 10 BN/UBN/211/09/634 “ “ Amanyi Adosi Sule “ “ 80,000.00 “ “ BN/UBN/212/09/635 “ “ Ateata Michael “ “ 100,000.00 “ “ BN/UBN/213/09/636 14/08/2009 30/04/2010 Cleuss I.Iwuh “ “ 100,000.00 “ “ BN/UBN/214/09/637 14/08/2009 30/04/2010 Samuel Kershima “ “ 40,000.00 “ “ BN/UBN/215/09/638 14/08/2009 30/04/2010 Iranloye Raphael O. “ “ 200,000.00 “ “ BN/UBN/216/09/639 14/08/2009 30/04/2010 O. Gbila Awolowo Rice “ 60,000.00 16% 10 BN/UBN/217/09/640 “ “ Terhemen Agudu Cassava “ 1,000,000.00 16% 10 BN/UBN/218/09/641 “ “

Mtaghernyi Anum “ “ 1,000,000.00 16% 10 BN/UBN/219/09/642 “ “ Tivhemba Akaa “ “ 1,000,000.00 16% 10 BN/UBN/220/09/643 “ “ Mrs. Dorathy M. “ “ 1,000,000.00 “ “ BN/UBN/221/09/644 “ “ Agudu Tersoo Aga “ “ 1,000,000.00 “ “ BN/UBN/222/09/645 “ “ Esther Aie Yam Loan 70,000.00 1"6% 10 BN/UBN/223/09/646 14/08/2009 31/06/2010 Ordue E. Msuega “ “ 300,000.00 “ “ BN/UBN/224/09/647 14/08/2009 30/04/2010 Ngiogo John Atume “ Loan 300,000.00 “ “ BN/UBN/225/09/648 14/08/2009 30/04/2010 Orbura T. “ “ 70,000,00 “ “ BN/UBN/226/09/649 “ “ Dr. Gabriel T. Amase “ “ 250,000.00 “ “ BN/UBN/227/09/650 “ “ Ubongu Justine “ “ 200,000.00 “ “ BN/UBN/228/09/651 “ “ Aluchia Dominic “ “ 350,000.00 “ “ BN/UBN/229/09/652 “ “ Ejemieare Peter “ “ 100,000.00 16% 10 BN/UBN/230/09/653 “ “ Ahar Liamgee “ “ 70,000.00 16% 10 BN/UBN/231/09/654 “ “ Rev. Ayankaa Moses “ “ 300,000.00 16% 10 BN/UBN/232/09/655 “ “ Atsundan Donatus G. “ Loan 100,000.00 “ “ BN/UBN/233/09/656 14/08/2009 30/04/2010 John G. Yuwa “ “ 30,000.00 “ “ BN/UBN/234/09/657 14/08/2009 30/04/2010 Ikyer Wilfred “ “ 80,000.00 “ “ BN/UBN/235/09/658 “ “ Nwanbude E. Mercy “ “ 250,000.00 “ “ BN/UBN/236/09/659 “ “ Ameh S. “ “ 90,000.00 “ “ BN/UBN/237/09/660 “ Asagh joyce i. “ “ 60,000.00 “ “ BN/UBN/238/09/661 “ “ Ogwu A. Anthony “ “ 150,000.00 “ “ BN/UBN/239/09/662 “ “ Sanni John A. “ “ 120,000.00 16% 10 BN/UBN/240/09/663 “ “ F. S. Obekpa Pius “ “ 200,000.00 16% 10 BN/UBN/241/09/664 “ “ Obute Ode Imini S. “ “ 80,000.00 16% 10 BN/UBN/242/09/665 “ “ Dogonyaro Moh’d “ Loan 150,000.00 16% 10 BN/UBN/243/09/666 “ “ Nicholas T. I. “ “ 70,000.00 16% 10 BN/UBN/244/09/667 “ “ Gbatar I. Emmanuel “ “ 100,000.00 “ “ BN/UBN/245/09/668 “ “ Mrs. Martha Ityough Poultry “ 750,000.00 16% 9 BN/UBN/246/09/669 14/08/2009 30/04/2010 Aba, Adah Anthony “ “ 40,000.00 16% 9 BN/UBN/247/09/670 14/08/2009 30/04/2010 Dr. Ogah D. I. Yam “ 1,000,000.00 16% 10 BN/UBN/248/09/671 14/08/2009 30/06/2010 279

Mr. Akpusugh S. I. “ “ 1,000,000.00 “ “ BN/UBN/249/09/672 “ “ Dr. Aweh D. A. “ “ 1,000,000.00 “ “ BN/UBN/250/09/673 “ “ Mr. Awase M. “ “ 1,000,000.00 “ “ BN/UBN/251/09/674 “ “ Pharm. Injor R. I. “ Loan 1,000,000.00 16% 10 BN/UBN/252/09/675 14/08/2009 30/04/2010 Mr. Igba J. “ “ 1,000,000.00 “ “ BN/UBN/253/09/676 14/08/2009 30/04/2010 Mr. Orkaa Matthias “” “ 1,000,000.00 “ “ BN/UBN/254/09/677 14/08/2009 30/04/2010 Mr. Ahula I. T. “ “ 1,000,000.00 “ “ BN/UBN/255/09/678 “ “ Mrs. Kate Isa “ “ 1,000,000.00 “ “ BN/UBN/256/09/679 “ “ Mr. Enifu E. I. “ “ 1,000,000.00 “ “ BN/UBN/257/09/680 “ “ Dr. Abah J. “ “ 1,000,000.00 “ “ BN/UBN/258/09/681 “ “ Miss Tor Charity “ “ 1,000,000.00 “ “ BN/UBN/259/09/682 “ “

Month: August 2010

Dr. Ogah D. I. Yam Loan 1,000,000.00 18% 10 BN/UBN/413/10/602 18/08/2010 30/04/2011 Mr. Akpusugh S. I. “ “ 1,000,000.00 “ “ BN/UBN/414/10/603 “ “ Dr. Anweh D. A. “ “ 1,000,000.00 “ “ BN/UBN/415/10/604 “ “ Mr. Awase M. “ “ 1,000,000.00 “ “ BN/UBN/416/10/605 “ “ Pharm. Injor R. I. “ “ 1,000,000.00 “ “ BN/UBN/417/10/606 “ “ Mr. Orkaa Matthias “ “ 1,000,000.00 “ “ BN/UBN/418/10/607 “ “ Mr. Ahula I. T. “ “ 1,000,000.00 “ “ BN/UBN/419/10/608 “ “ Mrs. Kate Isa “ “ 1,000,000.00 “ “ BN/UBN/420/10/609 “ “ Mr. Enifu E. I. “ “ 1,000,000.00 “ “ BN/UBN/421/10/610 “ “ Dr. Abah J. “ “ 1,000,000.00 “ “ BN/UBN/422/10/611 “ “ Miss Tor Charity “ “ 1,000,000.00 “ “ BN/UBN/423/10/612 “ “ Dr. Etito O. E. “ “ 1,000,000.00 “ “ BN/UBN/424/10/613 “ “ Miss Ojabo O. J. “ “ 1,000,000.00 “ “ BN/UBN/425/10/614 “ “ Dr. Akerkpe V. K. “ “ 1,000,000.00 “ “ BN/UBN/426/10/615 “ “ Dr. Time A. T. “ “ 1,000,000.00 “ “ BN/UBN/427/10/616 “ “ Mrs. Agee-Luga C. “ “ 1,000,000.00 “ “ BN/UBN/428/10/617 “ “ A. Pharm. Okeke, “ “ 1,000,000.00 “ “ BN/UBN/429/10/618 “ “ Ifeyinwa Mr. Inga PHIL “ “ 1,000,000.00 “ “ BN/UBN/430/10/619 “ “ Pharm. Inga MFE “ “ 1,000,000.00 “ “ BN/UBN/431/10/620 “ “ Mr. Shityo F. A. “ “ 1,000,000.00 “ “ BN/UBN/432/10/621 “ “ Mr. Tir J. K. “ “ 1,000,000.00 “ “ BN/UBN/433/10/622 “ “ Mrs. Ola Mary I. “ “ 1,000,000.00 “ “ BN/UBN/434/10/623 “ “ Mr. Omonya D. O. “ “ 1,000,000.00 “ “ BN/UBN/435/10/624 “ “ Mrs. Onmya M. U. “ “ 1,000,000.00 “ “ BN/UBN/436/10/625 “ “ Dr. Oyigeya M. “ “ 1,000,000.00 “ “ BN/UBN/437/10/626 “ “ Miss Opita Julie “ “ 1,000,000.00 “ “ BN/UBN/438/10/627 “ “ Mrs. Abah Fatu “ “ 1,000,000.00 “ “ BN/UBN/439/10/628 “ “ Mrs. Kor Dorcas “ “ 1,000,000.00 “ “ BN/UBN/440/10/629 “ “ Mr. Kwaghga “ “ 1,000,000.00 “ “ BN/UBN/441/10/630 “ “ Lawrence Dr. Edache M. O. “ “ 1,000,000.00 “ “ BN/UBN/442/10/631 “ “ Dr. Ageda Bem “ “ 1,000,000.00 “ “ BN/UBN/443/10/632 “ “ Mr. Saalu E. “ “ 1,000,000.00 “ “ BN/UBN/444/10/633 “ “ Mr. Damkor J. “ “ 1,000,000.00 “ “ BN/UBN/445/10/634 “ “ Dr. Enokela A. I. “ “ 1,000,000.00 “ “ BN/UBN/446/10/635 “ “ Mr. Tughgba R. O. “ “ 1,000,000.00 “ “ BN/UBN/447/10/636 “ “ Dr. Adakole I. Omale “ “ 1,000,000.00 “ “ BN/UBN/448/10/637 “ “ Mrs. Abuul Victoria “ “ 1,000,000.00 “ “ BN/UBN/449/10/638 “ “ Mr. Ijauka S. I. “ “ 1,000,000.00 “ “ BN/UBN/450/10/639 “ “ Mrs. Grace Awunde “ “ 1,000,000.00 “ “ BN/UBN/451/10/640 “ “ Mr. Igbahemba John “ “ 1,000,000.00 “ “ BN/UBN/452/10/641 “ “ Pcs (batch 2) “ “ Mr. Scott I. R. Yam Loan 1,000,000.00 18% 10 BN/UBN/453/10/642 18/08/2010 30/04/2011 Source: CBN, DFO, Makurdi, 2017

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APPENDIX III

BENUE STATE AGRICULTURAL DEVELOPMENT TRUST FUND MAKURDI LIST OF BENEFICIARIES OF AGRIC LOANS UNDER E.S.A.D.T.F MAKURDI, 2005

S/No Name of the Groups Members LGA Amount Date of Collected Repayment 1 Honey Bee Farmers 10 Gwer-West 200,000.00 30.06.06 2 Honey Bee Farmers 10 - 200,000.00 3 Groundnut Farmers Mkd 10 Makurdi 620,000.00 GPI 4 Groundnut Farmers Mkd 10 Makurdi 500,000.00 GPI 5 Groundnut Farmers 10 Oju 360,000.00 6 Sorghum Farmers Ukum GP 10 Ukum 260,000.00 7 Sorghum Farmers Ukum GP 10 Obi 200,000.00 8 Sorghum Farmers Asukums 9 Tarka 364,000.00 9 Sorghum Farmers 10 Makurdi 246,000.00 10 Ogwu Pepper Farmer Ogno 10 Makurdi 200,000.00 11 Tomatoes/Pepper Coop 10 Buruku 200,000.00 12 Standard Co-op Society 10 Buruku 420,000.00 13 Fish Farmers Gboko Group 10 Gboko 400,000.00 II 14 Fish Farmers Gboko I 9 Gboko 480,000.00 15 RCM Old Boys Coop 1 10 Konshisha 200,000.00 16 RCM Old Boys Coop 2 9 Konshisha 180,000.00 17 NCNF Group 1 10 Makurdi 200,000.00 18 NCNF Group 2 10 Makurdi 200,000.00 19 NCNF Group 1 9 Makurdi 184,000.00 20 Cassava Farmers Urudu 1 10 Makurdi 472,000.00 21 Cassava Wurukum 1 10 Makurdi 312,000.00 22 Cassava K/Ala Gp 1 10 K/Ala 400,000.00 23 Cassava K/Ala Gp 2 10 K/Ala 280,000.00 24 Cassava Mission G1 10 Makurdi 200,000.00

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25 Cassava Pacio Gp 1 8 Makurdi 260,000.00 26 Cassava Agatu Gp 1 10 Agatu 320,000.00 27 Cassava Mkd Gp 2 10 Makurdi 500,000.00 28 Cassava Wisdom 1 10 Makurdi 240,000.00 30.06.06 29 Fruits, Mbaikyase 10 Konshisha 100,000.00 30 Fruits, Cntral Gp 1 10 Makurdi 500,000.00 31 Melon, Uvir-Lye Gp 1 10 Guma 200,000.00 Source: Central Bank of Nigeria, Makurdi Branch, Development Finance Office (DFO), 2017

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APPENDIX IV

Table : Sample of Citrus Farmers in Benue State in 1970s

S/No Name of Farmer Local Government No of Stands Area 1 Vaaswem Gbenda Gboko 3000 2 Rev. G. O. Uva Gboko 7000 3 Toochi Genyi Gboko 2000 4 J. I. Orngu Dwem Gboko 2500 5 Nguyilan Wombo Buruku 2500 6 P. I. Anzenge Ushongo 4000 7 Hon. A. Anemba Ushongo 4000 8 Adaaku Aboshim Ushongo 3000 9 I. Aatsar Ushongo 2500 10 Tyoor Kuma Chelen Konshisha 5000 11 Rev. Y. Amachigh Ukum 5000 12 Aterume Afati Ukum 2000 13 Tse-Ubur Ukum 2000 14 Zaki Afanga Ukum 2000 15 Tse-Akundo Ukum 2000 16 Chia Ayeri Gwer-West 2000 17 Tor-Audu Uhembe Gwer-West 2000 18 Igba Akaa Gwer-West 2000 19 Chia Yough Gwer-East 2000 20 Tsekar Ikpanor Guma 2000 21 Tyoor G. Tyav Guma 500 22 Tyovenda Igber Vandeikya 4000 23 Iyonguhime Yua Vandeikya 5000 24 Zenda Ikyaave Vandeikya 6000 25 Akua Asen Vandeikya 6000 Source: Adopted (Modified) from, J. A. Angwe & T. Avav, “Impact of Missionaries on Tiv and Benue Agriculture” in T. Avar (ed.) Centenary of Christianity in Tivland; Synopsis of NKST Contribution to Evangelism in Tivland, p.156.

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APPENDIX V Cropped Area and Output for Major Crops in Benue State Benue State Cropped Area (.00HA) and Production/Output (.00MT) for Major Crops.

YEAR RICE SORGHUM YAM CASSAVA GRANDNUT SOYABEANS 1986 Area 91.55 124.32 53.41 153.51 52.27 0.62 Output 171.20 155.20 614.20 804.40 62.20 0.40 1987 Area 162.99 302.14 66.46 164.16 60.53 16.89 output 174.40 169.20 656.00 840.50 68.40 11.66 1988 Area 81.79 189.25 66.58 168.14 176.30 40.65 Output 196.30 151.40 699.10 83.30 81.10 22.36 1989 Area 86.69 208.02 74.73 206.10 79.91 31.95 Output 212.40 168.50 865.40 865.60 87.90 31.95 1990 Area 82.20 193.09 66.31 206.36 67.50 25.07 Output 201.40 156.40 762.60 996.70 94.50 32.59 1991 Area 96.61 203.09 84.03 192.76 70.67 22.18 Output 236.70 162.40 966.40 1214.40 106.00 33.24 1992 Area 101.12 136.57 99.37 121.45 46.21 59.75 Output 252.80 147.50 1185.50 1662.70 114.60 138.63 1993 Area 140.57 178.93 127.20 191.21 51.00 87.09 Output 323.30 250.50 1605.30 2504.80 121.40 211.43 1994 Area 102.87 103.50 210.68 158.50 28.44 18.01 Output 236.61 184.82 2298.53 1882.98 107.25 48.66 1995 Area 110.71 105.24 202.70 265.53 125.67 50.74 Output 212.56 184.17 2298.61 2859.72 385.34 65.96 1996 Area 166.70 113.63 251.84 296.43 194.39 58.25 Output 341.88 138.83 2896.10 3853.58 324.63 160.77 1997 Area 132.00 113.00 220.50 268.50 201.00 58.00 Output 244.20 163.85 2381.40 3544.20 335.67 87.50 1998 Area 134.24 111.01 222.76 266.30 199.35 58.07 Output 246.29 157.70 2383.26 3515.10 330.94 87.39 1999 Area 134.05 108.41 221.43 265.70 196.85 81.97 Output 266.76 188.63 2723.59 3507.24 342.52 159.89

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2000 Area 138.24 110.29 225.86 267.15 198.50 83.74 Output 275.10 193.01 2868.42 3526.42 347.38 163.29 2001 Area 137.86 110.27 226.05 267.04 198.50 83.92 Output 275.72 191.87 2875.36 3554.30 347.66 163.64 2002 Area 138.04 110.31 225.98 267.11 199.43 84.13 Output 276.08 193.04 2872.21 3547.22 358.97 134.89 2003 Area 137.95 110.07 225.98 267.34 198.68 83.77 Output 275.90 191.52 2870.71 3544.92 351.59 163.35 2004 Area 136.04 110.22 225.08 267.16 199.23 84.13 Output 272.08 190.68 2854.01 3547.80 358.61 164.89 2005 Area 137.60 110.13 226.14 261.54 198.84 85.77 Output 275.00 191.63 2871.98 3352.63 351.98 167.75 2006 Area 137.49 110.17 225.97 267.63 199.04 86.13 Output 277.73 191.90 2874.34 3559.48 358.27 169.68 2007 Area 136.94 110.25 225.98 268.11 200.11 87.83 Output 273.88 192.94 2572.21 3533.09 360.20 174.78 2008 Area 144.86 110.66 228.46 274.45 205.10 90.33 Output 289.72 191.44 2903.73 3616.51 369.18 179.76 2009 Area 144.42 112.26 226.76 276.03 206.38 90.84 Output 289.66 196.46 2902.80 3643.66 371.82 181.68 2010 Area NA NA NA NA NA NA Output NA NA NA NA NA NA 2011 Area NA NA NA NA NA NA Output NA NA NA NA NA NA 2012 Area 157.46 112.38 233.11 284.24 208.37 95.36 Output 146.87 196.67 30111.45 3767.75 3462.32 215.51 2013 Area 141.49 111.16 230.69 280.17 206.43 96.00 Output 154,68 192.03 2987.27 3807.83 369.18 216.71 2014 Area 144.32 110.08 231.69 144.32 205.33 96.47 Output 156.70 192.15 2988.34 2908.56 371.20 221.55 2015 Area 144.82 111.14 232.76 144.82 205.72 97.38 Output 156.60 193.15 3001.23 3909.61 369.14 224.78

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